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28/06/2022 - Economy

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June 28, 2022

Do you think that the online market place is hurting small business entrepreneurs and consumers? Comment (200 Words)

Refer - Indian Express

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IAS Parliament 1 month


·        The online aggregator platforms have also damaged large segments of small and medium businesses through their dominant position and the malpractices this position allows them to indulge in.

·        Be it e-marketplaces like Amazon and Flipkart or food service aggregators like Zomato or Swiggy or travel aggregators like MakeMyTrip and OYO, all have been accused of distorting the market.

·        Zomato, like other food aggregators, is said to run cloud kitchens. Many of them run private-labelled products in categories where other sellers have been successful.

·        Online travel aggregators are often accused of cartelisation. The Competition Commission of India’s investigation in the OYO-MakeMyTrip collusion case resulted in MakeMyTrip being ordered to relist properties of Treebo and FabHotels.

·        While using these platforms, citizens share their data voluntarily and involuntarily. The aggregators gather shopping habits, consumer preferences, and other personal data.

·        They capitalise on this data and information about other brands to launch competing products on their marketplace. This information asymmetry is exploited by the aggregators to devour organisations they promise to support.

·        Delayed payments, unreasonable charges, and hidden fees are common occurrences. The power of these platforms is at the cost of small hardworking businesses.

·        The rules should allow for punitive penalties for unfair practices. Market dominance and subsequent invoking of fair competition rules should be triggered at the level of micro-markets and for product segments.


K. V. A 1 month

Kindly review

IAS Parliament 1 month

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