Flipkart faces fresh CCI complaint over alleged deep discounting

MUMBAI: The price war has found its way to the regulator’s doorstep. Walmart-owned Flipkart is facing a fresh antitrust complaint after a sellers’ body accused the e-commerce giant of using deep discounting and preferential treatment to tilt the marketplace in favour of a select group of sellers.

The Forum for Internet Retailers, Sellers, and Traders (FIRST) has approached the Competition Commission of India (CCI), seeking an investigation into what it describes as anti-competitive practices that allegedly disadvantage a vast majority of sellers operating on the platform.

The complaint, filed under the umbrella of the Sebi-registered India SME Forum, names not only Flipkart but also its parent Walmart and affiliated entities, including Myntra, Ekart Logistics and other associated companies.

According to FIRST, Flipkart uses investor funding to supply products to just 33 preferred sellers at prices below prevailing market rates, enabling them to undercut competitors. The organisation claims this practice has placed more than 14 lakh other sellers on the platform at a competitive disadvantage.

The complaint specifically names sellers including OmniTech Retail, SuperCom Net and TrueCom Retail, alleging they receive products at heavily discounted prices before selling them on Flipkart at rates that competing merchants cannot match.

FIRST has accused Flipkart of abusing its dominant market position and engaging in anti-competitive conduct. It further alleges that the company has effectively been operating an inventory-led business model while continuing to present itself as a marketplace, an issue that has long been at the centre of debates around India’s e-commerce regulations.

In its filing, the organisation contends that Flipkart has “structured its operations to operate an inventory-based model in substance while presenting itself as a marketplace in form.”

The complaint also alleges that the company’s pricing strategy is sustained through capital infusions from its parent and what FIRST describes as undue tax benefits. According to the filing, Flipkart has created a “self-replenishing subsidy pool” of around Rs 3,000 crore annually through alleged undue GST exemptions.

FIRST has urged the CCI to direct its Director General to investigate the allegations and examine whether the company’s marketplace practices violate India’s competition laws.

The complaint comes even as Flipkart has been rolling out seller-friendly initiatives. The company recently expanded its zero-commission policy across all fashion products, extending a benefit that was previously limited to items priced below Rs 1,000.

According to Flipkart, the move is expected to benefit around 90,000 transacting sellers, including MSMEs, direct-to-consumer (D2C) brands and homegrown labels, by allowing them to retain a greater share of revenues and reinvest in business growth.

The latest complaint adds another chapter to the long-running scrutiny of India’s e-commerce sector, where regulators continue to grapple with balancing aggressive pricing strategies, marketplace neutrality and fair competition for millions of online sellers.