What is the ‘Open Network for Digital Commerce’?

Source: The post is based on the article “What is the ‘Open Network for Digital Commerce’?” published in The Hindu on 22nd May 2023

What is the News?

The Union government is looking to formally launch the Open Network for Digital Commerce (ONDC) in 2023 to “democratize e-commerce” and “to provide alternatives to proprietary e-commerce sites”. 

What is Open Network for Digital Commerce(ONDC)?

What is the purpose of launching ONDC?

What is the criticism against ONDC?

Critics argue that the purported benefits of an ONDC are far from certain at the moment. 

For one, sellers are already free to list their products across various e-commerce platforms even in today’s platform-centric e-commerce model. Buyers also routinely shop across platforms. 

Then there are also services such as price comparison that are offered by various private websites that bridge the information gap and help buyers make better decisions. 

Hence, the domination of the e-commerce market by platforms such as Amazon and Flipkart may not be due to any captive hold that these platforms have over buyers and sellers.