GOQii Technologies, a smart wearables maker backed by Ratan Tata, is planning legal action against the deep discounting of its products on Flipkart, which was in violation of its sales agreement with the marketplace.
In a legal notice sent to the Walmart-owned online marketplace on Saturday, GOQii said such discounting of its products also violates the foreign investment policy in e-commerce. The company has reached out to the DIPP and Internal Trade and the Competition Commission of India.
GOQii Technologies founder Vishal Gondal said, “Flipkart seems to have moved away from deep-discounting large brands and mobile phones, but for a startup like us, it creates a bigger business disruption. Since we also supply to corporates, some orders got cancelled. Trade partners like Croma and distributors are unhappy. We have never faced a situation like this in Amazon.”