17 - Sep - 2020

Predatory pricing - Modi governments' double standard.

The Commerce Minister, Piyush Goyal, has thundered that the government is probing the predatory pricing of Amazon and Flipkart and that, appropriate action would be taken on violation if any. Piyush Goyal has added that, his ministry has received complaints from CAIT, a traders’ body. Well and good. However, when the Commerce Minister says that predatory pricing would not be allowed in the e-commerce segment, how is that predatory pricing was allowed in the telecom sector? Many private operators including Airtel, Idea and Vodafone had complained that Reliance Jio was practising predatory pricing. But, the Modi government did not listen to all these complaints. At the same time, the government unceremoniously sacked J.S. Deepak from the post of Secretary, Telecom, when he wrote letter to the TRAI, demanding action against the predatory pricing of Reliance Jio. How is that the government says that it would not allow predatory pricing in the e-commerce segment while allowing it in the telecom sector. Is this not a double standard of Modi government?

[Inputs from Economic Times dated 18.10.2019]