Union Commerce Minister Piyush Goyal on Thursday said he is not against online platforms but India wants such entities to be fair and honest in their conduct. The Union minister said this a day after slamming e-commerce companies for predatory pricing. The Union minister said the rule of law must be followed in letter and spirit, and made it clear that consumer preferences should not be influenced by algorithms. Goyal also stressed on small businesses being given a fair chance to compete with e-commerce giants, PTI reported.

Government wants to invite FDI

"We are very clear that we want to invite FDI (foreign direct investment), we want to invite technology, we want the best of the world, and we are not at all against online," Goyal said at an event here, according to reports. The Union minister, who is an MP from Mumbai North constituency, said the country always wants fair dealings, honesty - honesty to the customer, honesty to the supplier of goods and services and ensuring that others also get a fair chance to compete against such online business.

Questions on Amazon's announcement

On Wednesday, Goyal expressed concern over predatory pricing by e-commerce firms and raised apprehensions about the impact of their operations on small retailers in the country. He voiced his apprehensions publicly, warning of huge social disruption with the massive growth of the e-commerce sector. Questioning Amazon's announcement of investing USD 1 billion in India, the minister said the US retailer is not doing any great service to the Indian economy but is only making up for the losses it has caused in the country. He said their huge losses in India smack of "predatory pricing", which is not suitable for the country as it impacts crores of small retailers.

Give consumers options

Goyal said the government wants to encourage online firms and is also in favour of such entities, which have tremendous advantages like speed and convenience. He said business should be by the law of the land. Algorithms should not be used to force consumer preferences. He said the ratings given on these sites should be honest. Without naming the entities, Goyal said the Consumer Affairs Ministry has noticed some organisations manipulating ratings. He said we want to ensure that our consumers get options, business practices are honest and within the ambit of the law of the land. Meanwhile, Goyal also said he hopes to bring a new e-commerce policy soon.