India’s online sellers to appeal against competition commission’s Flipkart ruling

The Competition Commission of India had said Flipkart as well as Amazon did not break regulations through their selection of merchants and brands. (Reuters)
Updated 12 January 2019

India’s online sellers to appeal against competition commission’s Flipkart ruling

  • All India Online Vendors Association, which represents more than 3,500 online sellers, had complained that Flipkart was using its dominant position to favor select sellers
  • India has a burgeoning e-commerce market, with almost 500 million Indians using the internet in 2018

MUMBAI: A group representing online sellers in India will appeal against the Competition Commission of India’s (CCI’s) ruling in favor of Walmart-owned Flipkart, the group’s lawyer Chanakya Basa said in a release on Saturday.
All India Online Vendors Association (AIOVA), which represents more than 3,500 online sellers, had complained that Flipkart was using its dominant position to favor select sellers. The CCI had rejected this argument in November.
The CCI had said Flipkart as well as Amazon did not break regulations through their selection of merchants and brands.
The AIOVA will appeal to the National Company Law Appellate Tribunal on Monday against the CCI decision, Basa told Reuters.
“We firmly believe we have filed adequate information to prove the existence of a prima-facie case which the hon’ble Commission has failed to take into account. Hence, we are filing this appeal,” Basa said in a statement.
The AIOVA has also brought a similar case against Amazon, alleging it favors merchants that it partly owns, such as Cloudtail and Appario.
India has a burgeoning e-commerce market, with almost 500 million Indians using the internet in 2018. The market is tipped to grow to $200 billion in a decade, according to Morgan Stanley.


WEEKLY ENERGY RECAP: Keeping things in balance

Updated 08 December 2019

WEEKLY ENERGY RECAP: Keeping things in balance

  • The over-compliance will result in cuts of 1.7 million bpd

Brent crude rose above $64 per barrel after OPEC+ producers unanimously agreed to deepen output cuts by 503,000 barrels per day (bpd) to a total 1.7 million bpd till the end of the first quarter of 2020.

The breakdown is that OPEC producers are due to cut 372,000 bpd and non-OPEC producers to cut 131,000 bpd.

Current market dynamics led to this decision as oil price-positive news outweighed more bearish developments in the US-China trade narrative that has weighed on oil prices throughout the year, with US crude exports rising to a record 3.4 million bpd in October versus 3.1 million bpd in September.

OPEC November crude oil output levels at 29.8 million bpd show that producers were already overcomplying with its current 1.2 million bpd output cuts deal by around 400,000 bpd. 

The over-compliance will result in cuts of 1.7 million bpd, especially when Saudi Arabia continues to voluntarily cut more than its share.

This makes the agreed 1.7 million bpd output cuts pragmatic since it won’t taken any barrels out of the market.

It isn’t a matter of OPEC making room in the market for other additional supplies from non-OPEC sources, as OPEC barrels can’t be easily replaced.

Instead, this is about avoiding any oversupply that might damage the global supply-demand balance.

Saudi energy minister Prince Abdulaziz bin Salman has effectively kept his promise and managed to smoothly forge a consensus among OPEC and non-OPEC producers.

He has also successfully managed the 24-country coalition of OPEC+ including Russia in reaching an agreement.

Despite suggestions otherwise in recent coverage of the Vienna meeting, the deeper cuts announced on Friday have nothing to do with the Aramco IPO. Let’s remember this meeting was scheduled six months ago and the IPO has been in the works for much longer.

The Aramco share sale did not target a specific oil price. If that was a motivating factor it could easily have chosen another time.