The Competition Commission of India (CCI) will take strict action against any e-commerce company that violates the law in the country in terms of conduct and policies, CCI chairman Ashok Kumar Gupta has clarified.

In a recent blow to Amazon, the CCI withdrew the approval it had given in 2019 to the US-based e-commerce giant to invest in Future Group, a move that would have thwarted the attempts of Reliance Industries Ltd (RIL) to take over Future Group’s retail assets. Imposing a Rs 200-crore fine on Amazon on December 17, the antitrust body said Amazon's 2019 deal with Future would remain in abeyance as the US e-commerce major misled the regulators about its intentions of investments in the Indian company.

Also read: Google approaches Karnataka HC against CCI's probe into Play Store rules

"The order seems to have found new power for CCI to keep the combination approval in abeyance," Shweta Dubey, a former CCI official, had told Mint earlier.

Speaking to The Economic Times, Gupta said CCI’s rulings would provide regulatory guidance to all stakeholders although he refrained from commenting on specific cases.

Also read: Amazon can appeal against CCI's penalty, not the order: HP Ranina

“It is expected that enterprises bring their conduct and policies in alignment with competition law and the regulatory guidance provided through orders,” Gupta told ET, adding that there will be no interference with legitimate business practices.

Earlier this year, Gupta had said digital markets had become zones of "entrenched and unchecked dominance" and it was challenging to apply competition law to such disruptive technologies.

The network effect of such digital markets may prevent an established player from getting replaced by a new company, PTI quoted Gupta as saying.

Also read: View: Giant brick and mortar stores can do a power of good to Indian economy

Reiterating similar concerns, Gupta said that concerns of anti-competitive conduct are heightened owing to the nature of the digital markets.

It is the responsibility of anti-competitive watchdogs like CCI to ensure that new players get the opportunity to enter such concentrated digital markets and the competition among digital platforms is based on their merits, the CCI chief said.

(Edited by : Shoma Bhattacharjee)

First Published:Dec 27, 2021 5:45 PM IST