CCI to take a call on complaints against e-tailers in 2 months

Competition Commission of India is examining the complaint against e-commerce companies and will decide in two months whether to initiate an inquiry against the companies over discount sales, CCI chairperson Ashok Chawla said here on Friday.

"We have received complaint in the matter," Chawla said, adding the commission will look into whether the discount offers had an appreciable adverse impact on competition or not.

CCI has received several complaints against e-commerce companies alleging predatory pricing. Brick and mortar companies fear that the massive discounts offered by e-commerce companies will drive away business from them and asked the government and CCI to initiate action. Last month minister of state Nirmala Sitharaman had said the government would look into the issue following complaints against Flipkart's mega discount sale.

Chawla also said the decision on $ 4 billion Sun Pharma-Ranbaxy deal will be taken in a month. Earlier the Commission had served notices to both the companies holding a prima facie view that the deal would have an appreciable adverse impact on competition. It had also held a public consultation process inviting suggestions and objections to the deal.

This is the first instance where the CCI has ordered a public scrutiny of a proposed merger and acquisition (M&A) deal to ensure compliance to fair trade regulations In April Sun Pharma had announced it would buy Ranbaxy from Japan's Daiichi Sankyo in an all-share deal pegged at $4 billion, including the debt of $800 million on Ranbaxy's books. Completion of the deal will make Sun the country's largest drug maker by sales and the world's fifth largest generic manufacturer.