Walmart-backed Flipkart has hit back at GOQii Technologies after the smart wearables maker slapped the e-tailer with a legal notice for allegedly deep-discounting its products.
Government sources said that Flipkart has reached out to the Department for Promotion of Industry and Internal Trade and the Competition Commission of India and stated that the e-tailer has not violated any norms.
They said that in a notice to GOQii, Flipkart called the allegations “baseless”, as the final price at which the products are sold on the online platform is independently determined by resellers and not Flipkart.
GOQii had sent a legal notice to Flipkart on May 18, claiming that the online retailer violated the FDI in e-commerce norms by offering heavy discounts on GOQii products. The move hurt its business, the company claimed, as other sellers and online platforms cancelled orders for its products due to Flipkart’s “predatory pricing”.
While a Flipkart India spokesperson did not reply to an email from TOI , founder & CEO of GOQii, Vishal Gondal, said, “We urge Flipkart not to use its position of dominance to compromise the business of small businesses. They are not acting in accordance with their contract with GOQii.” But instead of backing down, GOQii on Sunday sent a legal reply to Flipkart, calling its response an “afterthought”.
The company said it can produce evidence in the form of emails and WhatsApp texts to prove that Flipkart has full control over pricing.―Times of India