Armenia to check Wildberries for violation of competition rules

YEREVAN, September 8. /ARKA/. Prompted by a demand filed by several local companies Armenian authorities will check the activities of Russian largest e-retailer Wildberries for violation of competition rules, Economy Minister Vahan Kerobyan announced on Thursday. 

As for the prices, which can differ dozens of times, the minister pointed out that manufacturers themselves exhibit their products on the Wildberries’ platform and sell them directly to the buyer, while Armenian entrepreneurs acquire their goods from intermediaries.

At the same time, he added that from the tax point of view small businesses in Armenia are in a more favorable position, as they enjoy a preferential tax regime.

Armenian entrepreneurs and store sellers gathered on Thursday outside the government building in the capital Yerevan to demand immediate and complete closure of Wildberries representative offices in Armenia.  

According to the protesters, Wildberries, Russia's largest online retailer, owned by billionaire Tatiana Bakalchuk is causing significant harm to Armenia’s economy.

They, in particular, believe that Wildberries can make about 130 thousand local business entities end operation. This, in turn, would hit big businesses, such as banks, flower business, hairdressers and petrol stations.  

Wildberries has been operating in Armenia since 2018. In 2021 its first order delivery points opened, while direct sales started at the end of 2022 with the opening of the first distribution center.

In 2023, the company opened first pickup points, allowing local businesses to reduce their logistics costs and speed up the delivery of orders to customers.

As of today, the company runs as many as 270 pick points across Armenia. Wildberries continues to provide its platform for sales of Armenian-made goods. In January-August 2023, 4.5 billion drams worth of products from Armenia were sold on its platform. The retailer is also one of the biggest corporate taxpayers in Armenia. ($1 - 385.83 drams).-0-

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14:17 09/08/2023