A group of more than 2,000 online sellers has filed an antitrust case against Amazon in India, alleging the US company favors some retailers whose online discounts drive independent vendors out of business, a legal filing seen by Reuters showed.
The case presents a new regulatory challenge for Amazon in India, where it has committed $6.5 billion in investment but is battling a complex regulatory environment, reported Reuters.
In January, the Competition Commission of India (CCI) had ordered an investigation of Amazon and rival Flipkart, owned by Walmart, over alleged violations of competition law and certain discounting practices, which Amazon is challenging, according to court filings.
In the latest case, the All India Online Vendors Association, members of which sell goods on Amazon and Flipkart, allege Amazon engages in unfair business practices.
The group alleges that Amazon India’s wholesale arm buys goods in bulk from manufacturers and sells them at a loss to sellers such as Cloudtail. Such sellers then offer goods on Amazon.in at big discounts.
“This anti-competitive arrangement … is causing foreclosure of competition by driving independent sellers out of the market,” the group alleged in its Aug. 10 filing at CCI, seen by Reuters.
Full Content: Reuters
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