In a major development, the Competition Commission of India (CCI) has reportedly found e-commerce giants Amazon and backed by Walmart Flipkart guilty of violating competition laws by favoring select sellers on its shopping websites, Reuters reported.
In a 1,027-page report on Amazon and a separate 1,696-page report on Flipkart, both dated August 9, CCI researchers found that the companies boosted preferred sellers in search results, displacing other sellers.
In 2020, antitrust watchdog CCI ordered a probe into Amazon and Flipkart for allegedly promoting certain sellers they had business dealings with and prioritising certain listings.
Both Flipkart and Amazon have previously denied any wrongdoing and have claimed that their practices are in compliance with Indian laws. The report further reveals that both the e-commerce giants will review the report and submit their objections before the CCI staff decides on possible fines.
The case was filed through a complaint by Delhi Vyapar Mahasangh, a group linked to the Confederation of All India Traders (CAIT), the country’s largest trade organisation with nearly 80 million retailers.
In 2020, Delhi Vyapar Mahasangh alleged that e-commerce platform Amazon preferred certain sellers over others. The investigation also looks into whether the companies’ discounting practices harmed competition at large. Both Amazon and e-commerce giant Flipkart are under scrutiny.
“The findings of the investigation are the latest setback for Amazon and Flipkart in a country where they continue to face criticism over their business practices from smaller retailers, who say their businesses have suffered in recent years due to deep discounts offered online,” Reuters reported.
Amazon and Flipkart are major players in India’s e-retail market, which was valued at $57-$60 billion in 2023 and is expected to surpass $160 billion by 2028, according to Bain & Company.
(With contributions from Reuters)
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