India’s antitrust body on Monday, January 13, ordered an investigation into alleged competition law violations by Amazon and Walmart’s Flipkart, the latest setback for US-based e-commerce giants operating in the country.
The Competition Commission of India (CCI) stated it was ordering a wider probe following a review of allegations that Amazon and Flipkart were promoting some “preferred sellers” and in turn hitting business of other smaller sellers, reported Reuters.
The investigation order comes in a week when Amazon chief Jeff Bezos is expected to visit India for a company event and potential meetings with government officials.
The complaint against the two giant companies was filed by Delhi Vyapar Mahasangh, a group representing small- and medium-sized businesses, which alleged that several of Amazon and Flipkart’s preferred sellers were affiliated with or controlled by the companies themselves, either directly or indirectly.
The CCI also wants its investigations arm to probe the e-commerce companies’ discounting practices as well as their relationship with such sellers, it wrote in its 11-page order.
Full Content: Reuters
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