Amazon.com has begun legal action in India to quash an antitrust investigation against the company, saying it could cause “irreparable” loss and damage to its reputation, according to its court filing seen by Reuters.
Last month the Competition Commission of India (CCI) ordered an investigation of Amazon and rival Flipkart, owned by Walmart, over alleged violations of competition law and certain discounting practices.
Amazon and Flipkart have faced mounting criticism from India’s brick-and-mortar retailers, which accuse the US giants of violating Indian law by racking up billions of dollars of losses to fund deep discounts and discriminating against small sellers. The companies deny the allegations.
The CCI ordered its probe after a New Delhi-based trader group complained that the e-commerce giants were promoting select sellers and in turn hurting business for other smaller players in one of the world’s biggest online shopping markets.
“The entire order passed by (the CCI) … is bereft of any foundation,” Amazon said in a Feb. 10 filing to a court in the city of Bengaluru, rejecting the allegations levelled against the company.
“(The investigation order) suffers from non-application of mind as it appears to contain no reference to the finding of an appreciable adverse effect on competition.” Amazon declined a Reuters request for comment, saying the matter was going through the courts. The CCI did not immediately respond to a request for comment.
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