An Indian trade group representing online sellers has reportedly filed an antitrust case in opposition to Amazon India, alleging that e-commerce giant favors few retailers and brands whose online discounts drive independent vendors out of business.
The filing presents a new regulatory challenge for Amazon’s unit in India, the place where it has committed USD 6.5 billion in funding, however is battling a complex regulatory setting.
In early 2020, the Indian competition watchdog (CCI) had ordered an investigation of Flipkart and Amazon over alleged violations of competition regulations and unreasonable discount practices, which Amazon is challenging, as per the court filings.
In the recent case, All India On-line Distributors Affiliation members allege that the company engages in unfair enterprise practices. The group claims that Amazon India buys items in bulk from manufactures and sells them at a loss to sellers like Cloudtail. These sellers then offer items on Amazon.in at huge discount price.
The group wrote in filings that the anti-completive association is inflicting foreclosure of competition by driving independent vendors out of the market.
On other hand, Amazon said in the statement that it complies with all legal regulation and its Indian website is third-party marketplace where sellers have authority to decide product prices. The company also highlights the fact that its wholesale unit allows companies to buy merchandise and anybody can register on it.
In the forthcoming weeks, the Indian competition watchdog will evaluate the case and will deicide future course of action. The agency did not respond to request for comment. Meanwhile, spokesperson from Cloudtail commented that the company obeys all relegations in its operation.
For the record, Amazon India provides an e-commerce platform to over 650,000 sellers in the nation. The nation’s regulation allows the e-commerce giant to run e-commerce marketplace where sellers can list products.
Source Credit - https://www.usnews.com/news/top-news/articles/2020-08-26/exclusive-amazon-faces-new-antitrust-challenge-from-indian-online-sellers-legal-documents-show#:~:text=NEW%20DELHI%20(Reuters)%20%2D%20A,filing%20seen%20by%20Reuters%20showed.