ICA (Indian Cellular Association), the lobby of handset maker, has advised Suresh Prabhu (the commerce minister) to take action in opposition to Flipkart and Amazon, blaming that the ecommerce marketplaces are braking FDI (foreign direct investment) regulations by providing discounts—indirectly or directly—on other products including mobile phones via partner firms or intermediaries.
ICA, executives of which also had a meeting with Prabhu lately, quarreled that the firms were circumventing regulations on FDI below Press Note 3 by influencing the costs of electronic products and holding inventory. This led in the grinding down of revenue for offline retailers and putting at jeopardy the jobs of almost 60 Million individuals.
“Considering the disturbing condition that India and the industry are suffering, we request severe and urgent action in opposition to Flipkart and Amazon India for rampant violations of the terms of Press Note 3 by both indirectly and directly manipulating the sale cost of other goods including mobile phones,” claimed ICA to Prabhu.
The local media had a look at a copy of the letter sent last month to the commerce minister.
The ICA, which stands for handset manufactures such as Micromax, Apple, Vivo, Nokia, Lenovo/Motorola, and Lava also wanted “essential modifications” in Press Note 3 and other associated rules to make sure that violators encounters “stern penalties” below the “Prevention of Money Laundering Act” by treating the behavior of the firms as an action of economic terrorism in opposition to the nation.
Amazon refused the blames. “Amazon stays pledged to obey and is in fulfillment with all appropriate laws and regulations of India,” a representative claimed. “The costs for goods on the Amazon.in portal are totally determined by the merchants,” the spokesperson further claimed. Flipkart did not answer to questions. The grievance has revitalized the row between offline and online retailers.