India’s Competition Supervisory Commission plans to push for the restart of an investigation into allegations of non-competitive behavior by online commerce platforms Amazon.com Inc and Flipkart.
The Competition Supervisory Commission of India (CCI) plans to push for a relaunch of the investigation into allegations of non-competitive behavior by online commerce platforms Amazon.com, two sources familiar with the matter said. Inc and Flipkart of Walmart Inc.
In January 2020, the CCI initiated an investigation based on allegations that Amazon and Flipkart were promoting certain sellers on their e-commerce platforms, as well as reducing selling prices too much. deeply inhibited competition in the market.
The companies all denied these allegations and took legal action against the CCI investigation shortly thereafter. The development stalled the investigation for more than a year, until a court last week allowed CCI to continue.
In February 2021, a Reuters investigation based on Amazon documents found that the e-commerce platform had over the years favored a small group of sellers on its Indian platform. surname.
During the controversial phase of restarting the investigation, the CCI told the court that the Reuters report was corroborating evidence of Amazon’s conduct.
For its part, Amazon said that it does not give incentives to any sellers, and expressed disagreement with the Reuters report.
The source said India’s antitrust agency would review the Reuters report and could use it as part of an investigation.
UmbrellaAmazon and Flipkart are likely to appeal, but the CCI plans to ask them to provide information regarding the allegations “as quickly as possible”.
According to the source, investigations will be expedited, although they usually take months to complete in India.
The news comes as major US tech companies including Twitter Inc and Facebook Inc are struggling with the Indian Government over issues such as data privacy protection, which some Senior management in the industry considers protectionist.
Two sources said the CCI is speeding up all investigations involving big tech companies by deploying more staff to some cases and setting stricter deadlines.
According to the assessment, CCI is prioritizing these investigations as they can have a significant impact on the Indian economy and startups.