NEW DELHI (Reuters) – India’s antitrust physique on Friday informed a court docket {that a} Reuters report exhibiting Amazon.com Inc gave preferential remedy to a small group of sellers on its India platform corroborated proof it had acquired and which had triggered an investigation of the U.S. e-commerce big.
The Competitors Fee of India (CCI) introduced in January 2020 that it was investigating Amazon and Walmart Inc’s Flipkart following a grievance from a dealer group that they have been selling most popular sellers. However the probe into alleged violations of competitors legislation was placed on maintain as the 2 corporations mounted a court docket problem.
Whereas arguing on Friday for restarting the probe, Madhavi Goradia Divan, an Further Solicitor Common of India representing the CCI, learn elements of the Reuters report back to the decide within the Karnataka Excessive Court docket, saying it “corroborates what was mentioned” within the authentic grievance.
The Reuters story, which was revealed final month, was primarily based on inside Amazon paperwork dated between 2012 and 2019. It revealed that Amazon for years helped a small variety of sellers prosper on its platform, giving them discounted charges and serving to one reduce particular offers with huge tech producers.
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Amazon didn’t instantly reply to a request for touch upon Divan’s statements in court docket.
Amazon has mentioned it “doesn’t give preferential remedy to any vendor on its market,” and that it “treats all sellers in a good, clear, and non-discriminatory method”.
The CCI’s arguments within the case come after the watchdog this week submitted media clippings, together with the Reuters story, as a part of its reveals to the court docket.
Referring to the Amazon paperwork cited within the Reuters story, Divan mentioned the CCI’s director normal of investigations may name for the paperwork from the corporate and look at them.
Indian retailers, who’re a vital a part of Prime Minister Narendra Modi’s help base, have lengthy alleged that Amazon’s platform largely advantages a number of huge sellers and that the e-commerce firm engages in predatory pricing that harms their companies. The corporate says it complies with all Indian legal guidelines.
Divan learn to the court docket from the Reuters story for roughly quarter-hour. This included a discovering that some 35 of Amazon’s greater than 400,000 sellers in India in early 2019 accounted for round two-thirds of its on-line gross sales.
She additionally referred to paperwork cited within the story that confirmed Amazon was deeply concerned in increasing an enormous vendor on its platform named Cloudtail – during which it has an oblique fairness stake – although it mentioned publicly that Cloudtail will get the identical privileges as different distributors.
“Do you do it for all of the sellers,” Divan mentioned, referring to Amazon. “These are questions that must be requested.”
Following publication of the Reuters story, India’s financial-crime combating company, the Enforcement Directorate, requested Amazon for info and paperwork associated to its operations within the nation, Reuters reported final week.
Reporting by Aditya Kalra in New Delhi; Enhancing by Peter Hirschberg and Nick Tattersall
