India: Watchdog is seeking to understand the evolution of the e-commerce industry

According to a report from the Wall Street Journal, India’s antitrust watchdog is assessing the domestic e-commerce sector, a step that could have consequences for Amazon.com and Walmart’s Flipkart, which dominate online sales in the country.

In a questionnaire dated May 17, the Competition Commission of India stated says it is seeking to understand the evolution of the e-commerce industry, the sector’s methods and strategies, business practices, and “implications for competition,” according to a copy reviewed by The Wall Street Journal. Ernst & Young is conducting the study, according to the 14-page document, which is marked confidential.

The questions cover the percentage of products sold by categories, inventory practices, how pricing decisions are made, and total sales volume, among other subjects.

“What if tomorrow Amazon takes over Walmart-controlled Flipkart or vice versa? Wouldn’t there be a complete monopoly? This needs to be checked,” said an official at India’s Ministry of Corporate Affairs who declined to be named. The ministry oversees the Competition Commission.