The Federal Antimonopoly Service (FAS) of Russia has issued a warning to Ozon and Wildberries, demanding that they justify the internal mechanisms behind their automatic discount campaigns. Additionally, the FAS is investigating the discount policies of these platforms.
According to Kommersant, the FAS has instructed Ozon and Wildberries, two of Russia's largest e-commerce platforms, to publicly disclose and justify the internal mechanisms of their automatic discounts, which are applied to low-turnover goods at the seller's expense. The service is also examining the practice of setting discounts funded by the marketplaces themselves, which could lead to artificial price dumping.
The Russian government has become involved in the issue, with discussions ongoing about a proposal to require marketplaces to notify sellers 14 days in advance before launching a promotion and to obtain their consent.
Earlier, the Russian Association of Trading Companies and Manufacturers of Household and Computer Equipment (RATEK) filed a complaint with the FAS regarding marketplace discounting practices. Sellers also reported that Ozon and Wildberries were automatically including low-turnover goods in promotions at the sellers' expense without their knowledge. In response, the FAS issued a warning to both marketplaces, requiring them to provide sellers with "transparent and clear promotional mechanisms" by the end of March. The service also stated that if there are grounds, it will initiate proceedings for violations of antimonopoly law.
However, the FAS is still reviewing a second complaint from RATEK regarding marketplace discounts on sellers' goods.
"The FAS is examining this practice for compliance with antimonopoly laws. It is premature to discuss the marketplaces' price increases to an economically justified level,"
the service said.
In the office of Deputy Prime Minister Dmitry Grigorenko, who is overseeing the "Platform Economy" bill, it was noted that one of its articles is entirely dedicated to regulating the process of discounting goods, services, and works. According to the proposed bill, any price reduction on a seller's goods will only be allowed if the platform operator sends a notification of their intention to reduce the price at least 14 days before the promotion and obtains the seller's consent.
"It is expected that this procedure will be mandatory, both if the marketplace wants to lower the price at the seller's expense or at its own cost,"
said the office.
A RATEK representative believes the measures outlined in the bill are insufficient.
"The total amount of resources that marketplaces can allocate for discounts is unlimited, meaning they will continue to support monopolistically low prices on goods, which is prohibited for retail chains,"
they said, adding that there should be a discount cap of around 10% on marketplaces.
Meanwhile, Wildberries & Russ emphasize that their investments help make goods more accessible to consumers. They believe this "boosts demand and helps sellers increase sales."
Source: Kommersant
