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Tag: flipkart

  • Over 10,000 EVs are Deployed in Flipkart’s Delivery Fleet, Meeting its Goal

    With the addition of more than 10,000 electric vehicles (EVs) to its delivery fleet, e-commerce company Flipkart announced that it has reached a significant milestone. This is the outcome of EVs being gradually included in last-mile deliveries over the previous few years. The company announced that, as part of the Climate Group’s EV100 programme, it will transition to a completely electric logistics last-mile fleet by 2030.

    Currently, Tier-I cities like Delhi, Bengaluru, Hyderabad, and Chennai are home to 75% of Flipkart’s electric fleet. Flipkart also revealed in August 2024 that EVs were completing more than 55% of its food orders. Additionally, it used its electric vehicle fleet to carry more than 16% of groceries to Tier-II and smaller cities, such as Lucknow, Sonipat, Ludhiana, Bhubaneswar, Malda, Hubli, and Vizag, during the 2024 festive season.

    Driving Operational Excellence and Setting the Benchmark

    Significant operational efficiencies have been achieved as a result of the strategic use of EVs. In comparison to traditional delivery trucks, it has reduced the cost per order at the hub level and increased the last-mile delivery speed by 20%.

    Hemant Badri, senior vice president and group head of supply chain, customer experience, and re-commerce business at Flipkart Group, stated that the company is not only promoting operational excellence but also establishing a standard for sustainable practices in the industry at large by combining its growing EV fleet with significant investments in charging infrastructure.

    To facilitate this sustainable shift, Flipkart is investing heavily in charging infrastructure in addition to growing its fleet of EVs. In order to promote broader EV adoption, the company has teamed up with the Adani Group to set up 38 specific charging locations with 190 chargers overall in important Tier-II cities. Additional public infrastructure improvements are also planned. In order to improve supply chain operations and grow the integration of electric vehicles, Flipkart has also launched a last-mile aggregate model in Karnataka, Telangana, and Tamil Nadu, working with fleet operators that are focused on EVs.

    Company is Focusing on Strategic Partnership for Sustainable Growth

    According to Nishant Gupta, head of sustainability at Flipkart, the company is well-positioned to reach a 100% last-mile electric fleet by 2030 thanks to its strategic partnership with the Climate Group’s EV100 initiative and cooperation with top original equipment manufacturers, EV service providers, charging infrastructure partners, financing bodies, and manpower sourcing agencies.

     In an effort to reach its goal of having 10,000 electric vehicles for last-mile deliveries by 2025, Amazon India, another e-commerce company, has announced that it has partnered strategically with Gentari, an electric mobility company, for its EV deployment programme.

    ED Raids Offices of Flipkart and Amazon Merchants
    ED raids offices of Flipkart and Amazon merchants as part of an ongoing investigation, aiming to uncover financial irregularities.
    StartupTalkyNitin Konde

  • ED Raids Flipkart and Amazon Merchants’ Offices

    A few sellers on Amazon and Walmart-owned Flipkart had their premises raided by the Enforcement Directorate (ED) on 7 November 2024 on suspicion of breaking the Prevention of Money Laundering Act (PMLA) and foreign investment standards.

    19 locations in New Delhi, Gurugram, Panchkula, Hyderabad, and Bengaluru were searched, according to official sources. According to various sources, among of the companies being investigated are Appario Retail, Shreyash Retail, Darshita Retail, and Ashiana Retail. This could not be independently confirmed, though.

    Why These Offices Have Been Raided?

    There have been accusations, according to sources, that these dealers have been importing goods from China by paying lower import taxes and rerouting them through other countries. Complaints about underinvoicing are also present. According to a media report, many vendors route their goods through other areas for quicker clearance because Chinese consignments are detained for extended periods of time at ports for security inspections. According to media sources, they might not be aware of all the facts because the searches were conducted on sellers rather than e-commerce companies.

    According to official sources, there have been multiple grievances from impacted parties alleging that e-commerce companies are favouring some sellers over others and even influencing product prices either directly or indirectly.

    Dos and Don’ts of FDI

    Companies like Flipkart and Amazon use the marketplace model since inventory-based e-commerce prohibits foreign direct investment (FDI). This indicates that they provide an online marketplace for vendors to sell their goods rather than maintaining their own stock. However, physical B2B stores run by Amazon and Flipkart also permit FDI. They sell goods to sellers through these businesses, and the vendors resell the goods on their platform.

    The government has implemented a few further restrictions to prevent any FDI violations. The marketplace platform, for example, is not permitted to own stock in seller entities. Additionally, no more than 25% of the products that vendors on their marketplace can source come from their B2B businesses. The merchants, not Flipkart or Amazon, must offer the discounts.

    According to official sources, ED examined documents from roughly six of these vendors and made copies of some of them. The Confederation of All India Traders (CAIT), meanwhile, applauded the ED’s move.

    CAIT and AIMRA Already Filled Petitioned to CCI

    The mainline mobile retailers’ group AIMRA and the CAIT had previously petitioned the CCI to immediately suspend Flipkart and Amazon’s operations, claiming that the companies were using predatory pricing and burning money to offer steep product discounts.

    This government is dedicated to making sure that the trading community cannot be harmed by anyone. CAIT Secretary General Praveen Khandelwal said, “We urge both the CCI and the ED to take swift action and prevent any further, irreparable damage to the businesses of small traders in response to multiple complaints filed by the trading community regarding FDI violations and the anti-competitive practices of quick-commerce companies such as Blinkit, Swiggy, and Zepto.”

    Amazon.in Launches Creator Central for Indian Content Creators
    Amazon India launches Creator Central, a new platform for content creators to grow, monetize, and engage with their audiences across Amazon’s network.
    StartupTalkyNitin Konde

  • Flipkart Logs 7.2 Billion Visits from Customers

    From September 1 to October 28, the e-commerce company Flipkart saw 7.2 billion visits overall in terms of customer engagement during this festive season. The company saw a record 282 million unique visitors during that time, largely due to premiums and individualised preferences, particularly in Metros and Tier-2+ cities, which set new standards for e-commerce in India and reflected a rise in consumer sentiment and digital adoption.

    The 11th edition of Flipkart’s The Big Billion Days (TBBD) 2024 sale event kicked off on September 27. Flipkart VIP and Plus customers had early access starting on September 26. The event lasted for eleven days. September 27 also marked the beginning of Amazon’s month-long celebratory sale, known as the Amazon Great Indian Festival (AGIF).

    The Big Billion Days (TBBD) 2024 Sale

    A record 1.4 billion people used Flipkart’s marketplace during TBBD last year. The figures for this year’s TBBD event were not disclosed by the company. Speaking about the increase throughout the festive season, Flipkart’s head of growth (vice president), Harsh Chaudhary, said this year’s response highlights the company’s efforts to bring e-commerce to even the most remote areas of the nation.

     The company has been able to empower an ever-expanding network of merchants and provide millions of customers with improved shopping experiences by leveraging technology and broadening its reach, Chaudhary added. In addition to providing customer satisfaction, this season has become a crucial component of India’s retail scene by boosting economic growth and creating possibilities for local communities all around the nation.

    Growing Popularity of E-Commerce

    Customers from all around the nation, according to Flipkart, depend on online purchasing for a wide range of demands. In comparison to the previous year, the East region of India saw a 14.86% increase in unique visits and a 12% increase in consumers. Growth was comparable in urban and non-metro areas, indicating strong demand overall.

    During this festive season, some sellers also saw an increase of 40–50% year over year. In comparison to the previous year, the marketplace platform’s sellers had a notable increase in sales, greater offers, and increased involvement overall.

     This festive season’s top Flipkart shopping patterns also show how buyers have been flocking towards different categories. Fashion, technology (particularly laptops and tablets), household necessities, appliances, cosmetics, and general goods are among them. The growth of premium and mid-premium Android smartphones was strong, and users were particularly interested in the AI-powered capabilities. Flipkart claimed that its creative affordability structures, created in collaboration with banks and outside partners, were the main factor in this success.

     The eighth iteration of Samarth’s special sale event, Crafted by Bharat, was also successfully concluded by Flipkart. With contributions from hundreds of artisans, weavers, government agencies, non-governmental organisations, LGBTQ+ communities, rural business owners, and female entrepreneurs, more than 25,000 distinctive handmade items were on display. During the sale period, Samarth Sellers’ growth increased by 16%, or 1.6 times. 

    Online Vendors on Flipkart, Walmart’s Indian Subsidiary, Sue Antitrust Regulator
    According to court documents viewed by a media house, three online vendors who operate on Flipkart, owned by Walmart, have filed a lawsuit against the Indian antitrust watchdog following an inquiry that discovered violations of competition regulations by both Flipkart and competitor Amazon.
    StartupTalkyNitin Konde

  • Online Vendors on Flipkart, Walmart’s Indian Subsidiary, Sue Antitrust Regulator

    According to court documents viewed by a media house, three online vendors who operate on Flipkart, owned by Walmart, have filed a lawsuit against the Indian antitrust watchdog following an inquiry that discovered violations of competition regulations by both Flipkart and competitor Amazon. According to a media report, antitrust investigations conducted in August revealed that Flipkart and Amazon, two of their smartphone brands and sellers, had broken local competition laws by giving particular online sellers an unfair advantage and giving priority to particular listings. This is why the submissions have been made.

    The three platform vendors filed requests in the Karnataka High Court to “set aside” the investigation findings and halt the Competition Commission of India (CCI) procedure in an attempt to stop the crucial proceedings.

    This Move Will Delay the Investigations

    The investigative process, which began in 2020 when brick-and-mortar shops of the Confederation of All India Traders protested to the watchdog, may be delayed by lawsuits from sellers on Amazon and Flipkart. However, Flipkart and Amazon have not acknowledged any misconduct. According to court documents, three Flipkart sellers—CIGFIL Retail, Wishery Online, and Xonique Ventures—claim in their cases that they were asked to provide information to authorities throughout the inquiry but were subsequently identified as suspects, which is against due process.

    The sellers claimed in three different court files that the “alleged investigation… is arbitrary, opaque, and unfair.” The case is expected to be heard next week.

    Ex-Amazon Vendor Files Lawsuit Against CCI

    Notably, this transpires concurrently with a lawsuit that a former Amazon seller has filed against the CCI in connection with the ongoing inquiry. Additionally, the vendor Appario Retail stated that the CCI probe needs to be put on hold. 

    Experts at the time of the news said that it was significant since it was the first significant obstacle to the ongoing CCI investigation against Flipkart and Amazon. Natasha Treasurywala, Partner, Desai & Diwanji, previously stated in an interview with a media outlet that the seller who has contested the CCI investigation was initially a joint venture between Amazon and its Indian partner. As such, the lawsuit’s origin story might be a little off. On the other hand, the CCI will undoubtedly face some pressure if more sellers come forward. 

    The fact that additional sellers have now banded together to oppose the CCI raises the possibility that the case’s resolution will be postponed. Amazon and Flipkart’s attempts to get the antitrust investigation overturned have already resulted in multiple delays for the 2020 investigation. Eventually, though, the CCI carried out its inquiry and discovered, among other things, that Flipkart and Amazon had signed exclusive contracts with smartphone manufacturers like Samsung and Xiaomi, which was against the law. 

    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).
    StartupTalkyNitin Konde

  • 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

  • Flipkart Introduces B2B App for Refurbished Product Sellers

    With a new smartphone app called “Flipkart Reset for Business,” Walmart-owned Flipkart, an online retailer that rivals Amazon in the Indian market, is assisting sellers of refurbished goods.

    By providing a user-friendly platform that tackles typical issues faced by sellers in the refurbished products market, such as quality assurance, logistics, and unpredictable supply, the app seeks to empower both small and large sellers.

    The software offers a controlled environment to meet the growing demand for used products, especially in India’s tier 2 and 3 cities, starting with refurbished smartphones and accessories.

    How Does Flipkart Reset for Business Operate?

    Several tools are included in the Flipkart Reset for Business app to help merchants. The flexibility it provides with no minimum order quantity (MOQ) constraints is one of the most important features of this app. The fact that sellers can buy products in any quantity is advantageous for small enterprises. The app also provides warranty support and does a thorough 74-point quality check to guarantee product quality.

    Along with reasonable pricing, special discounts, and easy logistics, the app boasts a pan-Indian service network that supports delivery and pickup. The onboarding procedure for the app is simplified for convenience, enabling vendors to start their company right away. Sellers can get specialised help for product selection, order management, and post-sale support by registering with their GST or Shop Establishment certificates.

    Tackling Problems in the Marketplace

    Inconsistent supply chains and consumer mistrust of product quality are two issues that remain prevalent in the refurbished product industry, despite its tremendous growth. Sellers have access to a better-organised marketplace with extensive support—including professional advice on sales tactics and promotions—through the Flipkart Reset for Business platform.

    Flipkart strives to remove these obstacles by guaranteeing quality with its items that are backed by warranties and rigorous testing protocols. This programme promotes a circular economy by assisting vendors and increasing consumer confidence in reconditioned items.

    The Current Market Scenario of Refurbished Electronic Goods

    India’s market for reconditioned electronics is expected to expand significantly. According to a Redseer analysis, the industry might grow from $5 billion in 2021 to $11 billion in 2026. This expansion has been mostly driven by the need for reasonably priced electronics in tier 2 and tier 3 cities. Flipkart’s B2B app encourages the usage of reconditioned items as a sustainable consumption model while giving sellers the chance to capitalise on this expanding industry.

    The resale market is expanding quickly, enabling millions of consumers to own devices at reasonable costs. This offers reconditioned product vendors a huge opportunity.

    Ashutosh Singh Chandel, Senior Director & Business Head of Recommerce at Flipkart, said that the company is empowering sellers with an organised market and encouraging sustainable consumption by effortlessly granting access to high-quality and reasonably priced reconditioned products.

    At the moment, Flipkart Reset for Business covers more than 800 Indian cities in 29 states, with a primary concentration on accessories and smartphones. To reach a larger client base and more sellers, the company intends to broaden its platform.

    Flipkart Quietly Rolls Out ‘Minutes’ Service in Gurugram
    Users in Gurugram and the surrounding areas of the NCR region can now take advantage of Flipkart Minutes, a new fast commerce service, which was secretly launched by eCommerce giant Flipkart.
    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

  • Myntra, Owned by Flipkart, Starts Testing a Four-Hour Delivery Service

    The fashion store Myntra, which is owned by Flipkart, is supposedly testing a four-hour delivery service in four cities, including Bengaluru and New Delhi, according to various media reports.

    This represents a considerable departure from the platform’s typical delivery period of two to three days, and it is in line with the growing demand for faster deliveries in India’s rapidly expanding quick commerce industry.

    During this trial period, the company is providing a limited selection of items for speedier delivery. However, by the end of the year, the company intends to expand the service to include additional cities.

    Increasing Need for Rapid Trade

    The decision to investigate the possibility of implementing a four-hour delivery window comes at a time when speedy commerce is rapidly gaining popularity in India. This is especially true in industries like as grocery and office supplies, where companies such as Blinkit and Zepto have created delivery times as fast as 10-15 minutes.

    The shift towards faster delivery that Myntra has made is reflective of a broader trend that is occurring across many sectors, as customers are increasingly anticipating shorter wait periods for online purchases.

    Effects on the state of eCommerce in India

    Myntra’s foray into the world of fast commerce is indicative of a more widespread shift in the marketplace for online shopping in India. Additionally, competitors such as Amazon and Flipkart are paying attention to the growing demand for services that are delivered more quickly.

    Flipkart, which is the parent company of Myntra, has already introduced its own fast delivery service, which is called Flipkart Minutes, in a few cities. This is in contrast to Amazon, which has not yet completely embraced the competition to become the fastest retailer.

    As an increasing number of eCommerce platforms make investments in reducing delivery times in order to seize a portion of this fast expanding market, the rivalry is expected to get more intense.

    Constraints Faced by the Fashion Sector

    Due to the extensive selection of products and the greater rate of returns from customers, the fashion category has always been one of the most difficult categories for e-commerce platforms in India since its inception.

    Although Myntra has over 40 million users that transact on an annual basis, the company is still exploring new ways to improve the pace at which it delivers its products.

    A number of the company’s services have been gradually improved over the years. In 2022, the company introduced a service called “M-Express,” which had the objective of delivering things within 24 to 48 hours in certain cities. The continuing trial of a delivery service that operates for four hours represents the next stage in the company’s quest to meet the ever-changing expectations of its customers.

    Myntra Business Model | How Myntra Makes Money
    Learn how Myntra’s business model and revenue model drive profits through diverse inventory, efficient supply networks, and innovative tech solutions.
    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