Amazon and Flipkart violated India's competition laws: CCI probe
A recent investigation by the Competition Commission of India (CCI) has revealed that Amazon and Walmart-owned Flipkart, have breached Indian competition laws. The probe was initiated in 2020 after allegations surfaced that these platforms were favoring certain sellers with whom they had business ties. The CCI's comprehensive reports on both companies confirm these allegations.
CCI reports confirm anti-competitive practices by Amazon, Flipkart
The CCI's investigation resulted in two extensive reports, one for Amazon and another for Flipkart. These documents reveal that both companies created an environment where favored sellers were prominently displayed in search results, overshadowing other sellers. The reports state that "each of the anti-competitive practices alleged...were investigated and found to be true." This finding indicates a significant breach of competition laws by these e-commerce giants.
Amazon, Flipkart's practices marginalized ordinary sellers
The CCI reports also highlight the impact of these anti-competitive practices on ordinary sellers. They state that "ordinary sellers remained as mere database entries," underscoring the disadvantage faced by those not favored by Amazon and Flipkart. This finding further strengthens the allegations against these e-commerce platforms for violating competition laws in India.
Amazon, Flipkart to review CCI's findings
In response to the CCI's findings, both Amazon and Flipkart will now have an opportunity to review the reports and raise any objections. This step precedes a decision by CCI staff on potential fines for the companies. Previously, both firms have denied any wrongdoing and maintained that their practices comply with Indian laws. The upcoming review process will determine how they respond to these confirmed allegations of competition law violations.
CCI's findings echo concerns of smaller retailers
The CCI's findings resonate with the concerns expressed by smaller retailers in India, who have criticized Amazon and Flipkart for their business practices. These retailers argue that their businesses have been negatively affected by the deep discounts offered online. The investigation was initiated following a complaint from the Delhi Vyapar Mahasangh, an affiliate of Confederation of All India Traders (CAIT), representing 80 million retailers across India.
CAIT welcomes CCI's investigation findings
In a statement to Reuters, CAIT expressed its approval of the CCI's investigation findings. The trade body plans to "escalate the matter" with the central government after studying the reports. This development underscores the significant implications of these findings for both Amazon and Flipkart, as well as their relationship with smaller retailers in India.
