Industry body Associated Chambers of Commerce and Industry of India (ASSOCHAM) has warned that over-reach and over-regulation of the e-commerce sector could stifle the growth of entrepreneurship. It also cautioned that no micro managing of prices or other business practices should be encouraged or else it could lead to inspector-raj in the cyber and online world as well.
The industry chamber has stated that an initial draft circulated among stakeholders for discussion to frame a national e-commerce policy has suggested to introduce a pre-set timeframe for offering differential pricing or deep discounts by e-commerce players to customers. It also noted that the suggestions are part of the strategy to address anti-competitive issues in the e-commerce sector effectively. It pointed out that the restriction imposed on e-commerce marketplace, to not directly or indirectly influence the price of goods and services, would be extended to group companies of the e-commerce marketplace.
ASSOCHAM further said that deep discount or no discount is a commercial decision as long as it is not resorted to in sectors like banking, insurance or other highly sensitive sectors, the decision should be purely commercial. It also said that the deep discount and cash burning should be the prime concern of the promoters, venture capitalists and private equity funds betting on online entrepreneurs. It added that eventually, those with sound business models would survive; there would be churning, which has already started.