India’s antitrust physique on Friday advised a court docket {that a} Reuters report exhibiting Amazon.com gave preferential therapy to a small group of sellers on its India platform corroborated proof it had acquired and which had triggered an investigation of the US e-commerce big.
The Competition Commission of India (CCI) introduced in January 2020 that it was investigating Amazon and Walmart’s Flipkart following a criticism from a dealer group that they had been selling most well-liked sellers. But the probe into alleged violations of competitors legislation was placed on maintain as the 2 corporations mounted a court docket problem.
While arguing on Friday for restarting the probe, Madhavi Goradia Divan, an Additional Solicitor General of India representing the CCI, learn elements of the Reuters report to the decide within the Karnataka High Court, saying it “corroborates what was said” within the unique criticism.
The Reuters story, which was printed final month, was based mostly 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 minimize particular offers with massive tech producers.
Amazon didn’t instantly reply to a request for touch upon Divan’s statements in court docket.
Amazon has mentioned it “does not give preferential treatment to any seller on its marketplace,” and that it “treats all sellers in a fair, transparent, and non-discriminatory manner”.
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 displays to the court docket.
Referring to the Amazon paperwork cited within the Reuters story, Divan mentioned the CCI’s director normal of investigations would possibly 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 just a few massive sellers and that the e-commerce firm engages in predatory pricing that harms their companies. The firm 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 a giant vendor on its platform named Cloudtail – wherein it has an oblique fairness stake – regardless that it mentioned publicly that Cloudtail will get the identical privileges as different distributors.
“Do you do it for all the sellers,” Divan mentioned, referring to Amazon. “These are questions that have to be asked.”
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.
© Thomson Reuters 2021
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