in Commercial Law
Asked August 11, 2021

E-Retail business

  • 1 Answer

I have an online retail company where there are different sellers who display and sell their product which we get delivered. Now, is it illegal for me to favour a few sellers with regard to displaying them on top of the site?

Answer 1

It might not be illegal as such if you favourably display a few sellers’ products on the top of your site. However, it will be illegal if you have entered into agreements with the said sellers as they would be anti-competitive agreements under Section 3 of the Competition Act, 2002. This is because these would be vertical arrangements with sellers leading to ‘foreclosure of other sellers from the marketplace’. Also, if it can be proved that your company holds a dominant position in the relevant market, favouring a few sellers will in itself be illegal as it would lead to a situation of abuse of dominant position under Section 4 of the Competition Act. Therefore, it is better to do away with such a practice. 

Agree Comment 0 Agrees 5 months ago

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