Lok Sabha Question No. 2455 (UNSTARRED), answered on 2024-12-10
Subject: Impact of the Growing e-Commerce and Quick-commerce Sector
Ministry: COMMERCE AND INDUSTRY
Asked by: Adv K. Francis George

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 2455.

TO BE ANSWERED ON TUESDAY, THE 10 TH  DECEMBER, 2024.

## IMPACT OF THE GROWING E-COMMERCE AND QUICK-COMMERCE SECTOR

## 2455.  ADV K. FRANCIS GEORGE:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) whether the Government has assessed the impact of the growing e-commerce and  quick-commerce  sector  on  small  retailers  and  traditional  kirana  stores, especially in urban and semi-urban areas;
- (b) if  so,  the  details  of  the  assessment,  including  data  on  the  market  share, revenue,  or  business  losses  experienced  by  small  retailers  due  to  the expansion of e-commerce platforms;
- (c) whether the Government has identified practices such as predatory pricing, bulk purchasing  advantages,  or  exclusive  supplier  tie-ups  by  larger  entities  that negatively  impact  small  retailers  and  the  measures  taken  to  address  these problems; and
- (d) if so, the details thereof?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

(a) & (b):

Government has been focusing on the protection of the interest of small retailers and traditional kirana stores. Various measures in the form of Acts, Rules and Policies have been put in place to ensure a level playing field and act against practicing anti-competitive conducts by ecommerce  platforms.  In  addition,  the  Department  for  Promotion  of Industry and Internal Trade (DPIIT) has pioneered the initiative of Open Network for Digital Commerce (ONDC). The initiative aims at promoting open networks for all aspects of exchange of goods and services over digital or electronic networks. ONDC makes e-Commerce more inclusive wherein  small  and  medium-sized  businesses  can  use  any  ONDC compatible applications instead of being governed by specific platform centric policies. This provides multiple options to them to be discoverable over network and conduct business. It also encourages easy adoption of digital means by the small retailers and traditional kirana stores, who may be currently not on digital commerce networks.

| (c) & (d):   | The e-commerce sector is governed by a comprehensive legislative framework. Some of the Acts applicable to e-Commerce Sector are Consumer Protection Act, 2019; Consumer Protection (E- commerce) Rules, 2020; Competition, Act, 2002; Central Goods and Services Act (CGST) Act, 2017; Information Technology Act, 2000; Payment and Settlement Systems Act, 2007; Companies Act, 2013; Copyright Act, 1957 etc. FDI policy and Foreign Exchange Management Act, 1999 contain provisions related to Foreign Direct Investment (FDI) in e- Commerce Sector. Imposition of unfair or discriminatory prices (including predatory pricing) by a dominant enterprise or group is prohibited under provisions of Section 4 of the Competition Act, 2002. It ensures a level playing field and act against anti-competitive conducts. Information alleging anti- competitive conduct such as predatory pricing, bulk purchasing advantages, or exclusive supplier tie-ups with regard to e-commerce has been investigated by the Director General, Competition Commission of India.   |
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