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Tag: Antitrust Regulations Violations

  • In an Antitrust Investigation, Former Amazon Merchant Appario Retail Has Sued CCI

    According to court documents, Appario Retail, the former biggest seller on Amazon India, in which the e-tailer had a shareholding, has filed a lawsuit in the Karnataka High Court against the Competition Commission of India (CCI).

    Based on an antitrust regulator’s findings, the Bengaluru-based company has petitioned the court to suppress a probe into Amazon and its vendors. Amazon India sold the seller firm to Clicktech in April. As a result, the seller firm has petitioned the court to have the report that identified it overturned. The court’s hearing date on the subject is still unknown.

    CCI’s Findings Against Amazon and Flipkart

    This event coincides with rumors that the Competition Commission of India (CCI) has found that Amazon and Flipkart are giving preference to some merchants in India, and that the watchdog may fine these two online retailers.

    Delhi Vyapar Mahasangh, a traders organization and an affiliate of the Confederation of All India Traders (CAIT), initiated the CCI investigation in October 2019. The organization alleged that Amazon and Flipkart favored certain sellers over others.

    Since then, online markets and small merchants have been debating this issue frequently. Amazon and Flipkart both insist that they have complied with Indian laws. For a limited number of consumers who are paid subscribers, Amazon and Flipkart launched their main holiday sale on 26 September 2024 in order to provide speedier delivery and other services.

    In order to comply to regional e-commerce regulations, Amazon had to sell its ownership in Appario Retail, the second selling business. Amazon delisted and closed down Cloudtail, the largest seller at the time, in 2022. Catamaran Ventures, the founder of Infosys, and Amazon both had stakes in the business.

    The Significance of the Appario Retail Litigation

    Amazon has continuously refuted any misconduct, asserting that it abides by Indian law and handles all of its merchants equally. The company’s operations in India are seriously challenged by the CCI’s conclusions and the ensuing legal action.

    The action could have larger ramifications for India’s e-commerce sector and represents the first legal challenge to the CCI’s inquiry. Should Appario succeed, it might create a precedent that would encourage other businesses to question the CCI’s jurisdiction.

    Ecommerce Companies in India Are Under Strict Scanner

     Increased surveillance has been directed towards the Amazon in India. A question that was posed by the Minister of Commerce, Piyush Goyal, in August was whether or not the exponential expansion of eCommerce companies in the country was a “matter of concern” or something that should be celebrated.

    The government is also keeping a close eye on businesses that engage in quick trade. On 20th September a media report stated that the trade promotion organization DPIIT forwarded a complaint against rapid commerce companies that it had received from a retail sector body to the CCI. The report also stated that the commission had the option of taking suo motu notice of the matter.

    Flipkart and Amazon Violated Antitrust Regulations in India
    An Indian antitrust investigation has determined that U.S. eCommerce giant Amazon and Walmart’s Flipkart violated local competition laws by providing preferential treatment to specific sellers on their shopping websites, according to reports published by a reputable media outlet.
    StartupTalkyNitin Konde

  • To Calculate Fines in an Antitrust Lawsuit, CCI Wants Amazon and Flipkart’s Transaction Data

    According to a report published by a renowned media house, the Competition Commission of India has entered the final stage of its anti-trust lawsuit against Amazon and Flipkart. The regulator is seeking financial documents from the two e-commerce giants to determine the penalty.

    The specifics of the annual revenue will be used to assist in determining the penalties in the case that has been going on for four years after the defense of the two companies has been heard.

    Fine up to 10% on Global Turnover

    An update to the competition legislation was made in 2023 that allows the regulator to fine companies up to 10% of their global revenue or income from the last three fiscal years for anti-competitive actions. According to various media reports that were published earlier, the anti-trust regulator is poised to impose penalties on Amazon for alleged anti-competitive behavior. A notice was going to be published very soon, and the investigation arm of the CCI confirmed the accusations that were brought against Amazon Seller Services Pvt Ltd.

    Ecommerce Companies in India Are Under Strict Scanner

    Increased surveillance has been directed towards the Amazon in India. A question that was posed by the Minister of Commerce, Piyush Goyal, in August was whether or not the exponential expansion of e-commerce companies in the country was a “matter of concern” or something that should be celebrated.

    The government is also keeping a close eye on businesses that engage in quick trade. On 20th September a media report stated that the trade promotion organization DPIIT forwarded a complaint against rapid commerce companies that it had received from a retail sector body to the CCI. The report also stated that the commission had the option of taking suo motu notice of the matter.

    What Exactly Are Investigation’s Findings?

    An investigation into Amazon and Flipkart was ordered by the Competition Commission of India (CCI) in the year 2020. The CCI was concerned that the two companies were reportedly giving preference to certain listings and were encouraging particular merchants with whom they had business connections.

    Investigators from the Competition Commission of India (CCI) concluded that Amazon and Flipkart had developed an environment in which preferred merchants appeared higher in search results, thereby displacing other vendors. The CCI investigators made this discovery in two distinct reports, each of which was around 1,696 pages long and submitted on 9 August.

    According to both findings, which are not available to the public and are being published by a renowned media house for the very first time, each of the anti-competitive practices that were said to have occurred was investigated and confirmed to be genuine.

    Flipkart and Amazon violated antitrust regulations in India
    An Indian antitrust investigation has determined that U.S. eCommerce giant Amazon and Walmart’s Flipkart violated local competition laws by providing preferential treatment to specific sellers on their shopping websites, according to reports published by a reputable media outlet.
    StartupTalkyNitin Konde

  • Samsung, Xiaomi, and Other Smartphone Manufacturers Accused of Conspiracy With Amazon, and Flipkart by CCI

    According to regulatory reports that were reviewed by a media house, Samsung, Xiaomi, and other smartphone manufacturers conspired with Amazon and Walmart’s Flipkart to debut goods only on the websites of the eCommerce businesses in India. This was done in violation of antitrust regulations.

    Antitrust investigations carried out by the Competition Commission of India (CCI) have revealed that Amazon and Flipkart have violated local competition laws by giving preference to certain sellers, prioritizing certain listings, and steeply discounting products, thereby causing harm to other businesses. This information was reported by a well-known media outlet.

    How Do Samsung, Xiaomi, Motorola, Realme, and Oneplus in Partnership With Flipkart and Amazon Violate the Norms?

    In addition, the Competition Commission of India (CCI) stated in its 1,027-page report on Amazon that the Indian subsidiaries of five businesses, namely Samsung, Xiaomi, Motorola, Realme, and OnePlus, were “involved in the practice of exclusive” phone launches in “collusion” with Amazon and its affiliates, which is a violation of competition law.

    In the case of Flipkart, a report by the Competition Commission of India (CCI) that was 1,696 pages long stated that the Indian units of Samsung, Xiaomi, Motorola, Vivo, Lenovo, and Realme engaged in comparable practices.

    The involvement of smartphone manufacturers like as Samsung and Xiaomi in the lawsuit may provide them with additional challenges in terms of legal and regulatory compliance.

    The concept of exclusivity in the economic world is repulsive. CCI’s additional director general G.V. Siva Prasad said in the Amazon and Flipkart investigations, in identical findings, that not only does it go against the principles of free and fair competition, but it also goes against the well-being of customers.

    A particular media outlet noted in its special report that the CCI’s reports, which are dated August 9 and are not available to the public, have accused the smartphone companies of engaging in anticompetitive behavior.

    What Next?

    The CCI will examine any objections to its findings from Amazon, Flipkart, the retailer association, and the smartphone companies in the coming weeks. According to individuals familiar with the matter, the organization may impose fines and require the companies to modify their business practices.

    The Indian retail industry has long held that online marketplaces like Amazon and Flipkart, as well as smartphone manufacturers, introduce new models of phones exclusively online. This has led to complaints from local businesses who claim they were unable to keep up with customer demand for new models and instead turned to online merchants.

    Based on data analysis conducted by smartphone firms, both CCI reports concluded that exclusive releases had a significant impact on both online merchants and traditional brick-and-mortar stores that received mobile phones at a later period.

    Flipkart and Amazon violated antitrust regulations in India
    An Indian antitrust investigation has determined that U.S. eCommerce giant Amazon and Walmart’s Flipkart violated local competition laws by providing preferential treatment to specific sellers on their shopping websites, according to reports published by a reputable media outlet.
    StartupTalkyNitin Konde

  • Flipkart and Amazon Violated Antitrust Regulations in India

    An Indian antitrust investigation has determined that U.S. eCommerce giant Amazon and Walmart’s Flipkart violated local competition laws by providing preferential treatment to specific sellers on their shopping websites, according to reports published by a reputable media outlet.

    An investigation into Amazon and Flipkart was ordered by the Competition Commission of India (CCI) in the year 2020. The CCI was concerned that the two companies were reportedly giving preference to certain listings and were encouraging particular merchants with whom they had business connections.

    What Exactly Do the Investigation Reports Reveal?

    Investigators from the Competition Commission of India (CCI) concluded that Amazon and Flipkart had developed an environment in which preferred merchants appeared higher in search results, thereby displacing other vendors. The CCI investigators made this discovery in two distinct reports, each of which was around 1,696 pages long and submitted on 9 August.

    According to both findings, which are not available to the public and are being published by a renowned media house for the very first time, each of the anti-competitive practices that were said to have occurred was investigated and confirmed to be genuine.

    According to the two reports, “Ordinary sellers remained as mere database entries,” that is the conclusion that was reached for both businesses. Both businesses have maintained in the past that they have not committed any wrongdoing and that their operations are in accordance with the laws of India.

    The report will now be reviewed by the two corporations, and any objections will be submitted to the CCI staff before any potential fines are decided upon.

    It Is a Big Setback for Both the Firms

    Smaller merchants in the country continue to criticise Amazon and Flipkart for their business practices. These retailers claim that their companies have suffered in recent years as a result of the deep discounts that are offered online. The findings of the inquiry are the latest setback for Amazon and Flipkart.

    A formal complaint was lodged by the Delhi Vyapar Mahasangh, a branch of the largest trade organisation in India, the Confederation of All India Traders (CAIT), which speaks for 80 million merchants. While responding to this complaint, CCI launched a full scale investigation on both the firms. As a response to the reports, CAIT expressed its approval of the conclusions of the CCI probe and stated that it would review the reports and “escalate the matter” with the federal government.

    The eCommerce market in India is anticipated to be worth between $57 and $60 billion in 2023, and it is expected to surpass $160 billion in value by 2028, according to projections provided by the consulting firm Bain. The biggest competitors in this sector are Amazon and Flipkart.

    Amazon has been accused of engaging in “anticompetitive and unfair strategies to illegally maintain its monopoly power,” according to the Federal Trade Commission, who later filed a lawsuit against the corporation in the United States. Amazon has stated that the complaint filed by the FTC is illogical and would be detrimental to customers because it would result in increased pricing and delayed delivery times.

    The Flipkart Sellers Are Upset Over the GST OTP Mandate
    A new requirement that requires sellers on Flipkart to authenticate their goods and services tax identification number (GSTIN) via an OTP (one-time password) authentication procedure has left many vendors confused.
    StartupTalkyNitin Konde