Mint Quick Edit | Goyal’s angst: Online platforms are using predatory pricing
Commerce minister Piyush Goyal has raised concerns over e-commerce platforms using predatory pricing to the detriment of traditional retailers. Goyal said the large amounts of investments being made by these platforms in India were to fund the losses that he suggested were a result of such pricing. “Are we going to cause huge, social disruption with this massive growth of e-commerce? I don’t see it as a matter of pride that half our market may become part of the e-commerce network 10 years from now; it is a matter of concern," he said.
Such charges have been made previously too, but the platforms have denied them. Goyal’s rather blunt expression, however, makes the government’s growing displeasure clear. He didn’t say if any action is being planned.
To be sure, declining footfalls for many brick-and-mortar retailers have led to survival worries and fear of job losses. A level playing field is, therefore, necessary to compete fairly. That said, online retail has broadened choice for consumers and is helping small businesses sell more widely and easily.
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