GOQii gains support from other online retailers against Flipkart over the predatory pricing lawsuit.
The All India Online Vendors Association (AIOVA) told Reuters in a statement it plans to file a plea to join GOQii’s case against Flipkart on behalf of 3,500 online sellers it represents.
- The AIOVA to join GOQii against Flipkart.
- GOQii sued Flipkart last month over deep discounting its products.
- “We lost corporate orders for 5 lakh units because the Walmart-owned firm listed our devices 70-80% below cost” – Vishal Gondal.
- Flipkart denies the claim; they said all the postings are from 3rd party resellers.
- Next hearing of this case is on June 5.
Experts are speculating small traders and startups may take other marketplaces to court over the deep discounting tactics.
History between Flipkart and GOQii
GOQii signed an agreement last year with a Flipkart unit, allowing it to sell two GOQii’s products at a price not below Rs. 1,999 and Rs. 1,499. Last month they saw the Flipkart’s website showing the products at a price of Rs. 999 and Rs. 699. They then served a legal notice to Flipkart saying it was giving “unauthorised” discounts and resorting to “predatory pricing”.
Flipkark defended itself by saying – Flipkart was just a business-to-business wholesale venture which sells goods to re-sellers. The court has ordered the sellers to remove the wearable devices from the Flipkart platform, as interim relief.