Abuse of dominant position

Subject: Economy

Context:

Flipkart has moved the Supreme Court against an order passed by the National Company Law Appellate Tribunal (NCLAT), which had asked the Competition Commission of India (CCI) to initiate a probe against the company for abuse of dominant position.

Concept:

• It is adopting predatory pricing mechanisms, which resulted in losses for small retailers.And also new players would find it difficult to breach the marketplace presence gained by incumbents
• The CCI’s mandate is to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade in the markets of India.