January 8, 2020
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Platform transparency urged to reduce information asymmetry and promote competition on merits in e commerce marketplaces.
The study identifies features affecting competition-lack of platform neutrality, unfair platform to business contract terms, exclusive contracts, price parity restrictions and deep discounts-and states these may be examined case by case under the Competition Act, 2002 while the report itself does not determine anti competitive conduct. To mitigate information asymmetry and promote competition on the merits, the CCI advocates transparency measures for marketplaces: plain language descriptions of search ranking parameters (without disclosing algorithms), clear data collection/use/sharing policies, verified review mechanisms, prior notice for contract revisions, and transparent discount policies.