China is boosting direct-to-consumer (D2C) sales of luxury goods from local manufacturers at much lower prices. Items like handbags, clothing, and cosmetics—sold without brand logos and are offered at a fraction of retail costs. This raises key questions about potential anti-competitive practices and global market fairness.
In response to US tariffs, China is promoting direct-to-consumer luxury goods from local manufacturers at much lower prices. Videos on X show TikTok users highlighting Chinese suppliers offering logo-free versions of high-end items like Birkin and Louis Vuitton, claiming similar quality and craftsmanship at a fraction of retail prices.
While the trade and tariff war between the two countries is on, the question of anti-competition practices does arise. China라이브 바카라 push for low-cost, logo-free luxury goods raises anti-competition concerns, as it undercuts global brands by replicating quality without branding, potentially disrupting fair market practices and intellectual property norms.
But what is anti-competition in the global and Indian context? Here are the details.
It refers to business practices that unfairly restrict competition, distort markets, or harm consumers and rival companies. Some ways of this practice include price-fixing, market monopolies, predatory pricing, and abuse of dominant market positions.
Mostly, these practices can hinder innovation, reduce consumer choice, and create uneven playing fields in international trade.
There are regulatory bodies like the Competition Commission of India (CCI), the European Commission, and the US Federal Trade Commission which work to prevent and penalize anti-competitive behavior to ensure fair, open, and competitive markets worldwide.
CCI is the regulatory body that works towards managing anti-competition practices. The body investigates cases of dominance and unfair trade practices to ensure that the running markets remain open and consumer interests are protected. A key element that the organisation also reviews is mergers to prevent undue concentration of market power.
On April 16, CCi imposed a penalty of Rs 1.04 crore on UFO Moviez India and its subsidiary Scrabble Digital and Rs 1.66 crore on Qube Cinema Technologies for indulging in anti-competitive conduct.
The matter pertains to the tussle between theatre owners and companies like UFO Moviez and Qube which supply digital cinema equipment on rent.
Earlier in November 2024, the CCI imposed a Rs 213.14 crore fine on Meta Platforms Inc. for abusing its dominant position through WhatsApp's 2021 privacy policy update.
The update required users to accept expanded data-sharing terms with Meta, which the CCI deemed unfair and anti-competitive. The Commission also directed WhatsApp to cease sharing user data with other Meta companies for advertising purposes for five years .
In another case recently, a CCI investigation revealed that Zomato and Swiggy violated competition laws by favoring certain restaurants, thereby hindering market competitiveness.