{"id":152203,"date":"2021-12-09T20:47:38","date_gmt":"2021-12-09T15:17:38","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=152203"},"modified":"2021-12-09T20:47:38","modified_gmt":"2021-12-09T15:17:38","slug":"covid-impact-on-what-we-may-call-a-relevant-market","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/covid-impact-on-what-we-may-call-a-relevant-market\/","title":{"rendered":"Covid impact on what we may call a relevant market"},"content":{"rendered":"

<\/span><\/p>\n


\n<\/span>News<\/span><\/b>–<\/span>\u00a0All-India Mobile Retailers\u2019 Association recently threatened to approach the Competition Commission of India (CCI) against Chinese phone-maker Xiaomi\u2019s alleged bias in\u00a0favour\u00a0of online marketplaces over offline retailers.<\/span>\u00a0<\/span><\/p>\n

Recently Supreme court\u00a0allowed CCI to go ahead with an investigation against e-commerce players Flipkart and Amazon<\/span>.<\/span>\u00a0<\/span><\/p>\n

In all these cases terms like Relevant market, dominant position\u00a0occurs\u00a0recurrently. India\u2019s Competition Act, 2002 defines these terms. Though the act provides a definition of relevant market but question is whether our online and offline\u00a0markets constitute a single relevant market. Rulings by Indian courts have not been consistent in this aspect. Even though courts increasingly\u00a0favoured\u00a0the view that online and offline markets fall in the same relevant market, there have been contrary views.<\/span>\u00a0<\/span><\/p>\n

Offline versus Online\u00a0market ,advantages\u00a0to the latter?<\/span><\/b>\u00a0<\/span><\/p>\n

1)\u00a0<\/span>Online retailers<\/span><\/b>\u00a0have\u00a0<\/span>significantly lower customer-reach costs<\/span><\/b>\u00a0than offline retailers<\/span>.<\/span>\u00a0<\/span><\/p>\n

2)<\/span>Offline<\/span><\/b>\u00a0retailers\u00a0<\/span>bear the costs of setting up a warehouse, transporting products<\/span><\/b>\u00a0there, and so on, while online retailers can serve customers across a large area with a single warehouse<\/span>.<\/span>\u00a0<\/span><\/p>\n

3)<\/span>Transportation costs of products are often passed on to end customers<\/span><\/b>. Savings on these allow online retailers to\u00a0<\/span>sell customers the same products at lower prices<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n

4)Internet retail services lower the transportation costs of customers,\u00a0<\/span>allow quick and convenient product searches, offer a variety of products in a range of price brackets<\/span><\/b>, and\u00a0<\/span>provide detailed product information<\/span><\/b>\u00a0that is often not available at regular retail stores<\/span>.<\/span>\u00a0<\/span><\/p>\n

Conclusion<\/span><\/b>-COVID pandemic has altered shopping circumstances, attitudes and habits over the past 20 months or so, with an increased number of retail consumers now relying on online purchases for reasons that go beyond price\u00a0differences ,<\/span>it\u00a0is imperative that the case for the definition of relevant market is settled.<\/span>\u00a0<\/span><\/p>\n

Source<\/span><\/b>–<\/span>\u00a0This post is based on the article \u201c<\/span>Covid impact on what we may call a relevant market\u201d\u00a0<\/span><\/b>published in\u00a0<\/span>Livemint<\/span><\/b>\u00a0on<\/span>\u00a09\u00a0th\u00a0Dec 2021<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

News–\u00a0All-India Mobile Retailers\u2019 Association recently threatened to approach the Competition Commission of India (CCI) against Chinese phone-maker Xiaomi\u2019s alleged bias in\u00a0favour\u00a0of online marketplaces over offline retailers.\u00a0 Recently Supreme court\u00a0allowed CCI to go ahead with an investigation against e-commerce players Flipkart and Amazon.\u00a0 In all these cases terms like Relevant market, dominant position\u00a0occurs\u00a0recurrently. India\u2019s Competition Act,… Continue reading Covid impact on what we may call a relevant market<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501],"class_list":["post-152203","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704732518},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/152203","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=152203"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/152203\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=152203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=152203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=152203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}