India’s competition Guard is exploring deals between Amazon, Flipkart
- ByStartupStory | May 31, 2022
E-commerce giants Amazon India and Flipkart have once again been placed under the competition commission of India (CCI) scanner. The research department of the competition monitoring agency is currently investigating documents revealing financial transactions between the e-commerce platform and its preferred sellers.
According to a report from The Economic Times, the investigative department, which is currently investigating the documents found in the raid last month, has demanded more time from the CCI. The raid took place in the Amazon and Flipkart seller’s offices. The survey should be completed in the first week of June. However, additional time was required to analyze the data.
“Significant discounts are an important antitrust issue under investigation by CCI, and documentation on the cost of goods provides more insight into who is subsidizing those goods. “The source added. One of the issues that regulators are investigating is the involvement of e-commerce giants in these online vendors. “In addition, some e-commerce companies themselves own shares in online retailers, so CCI is considering terms for such equity investments,” sources said.
The Federation of All India Traders (CAIT), an industry group, welcomed the investigation and assault of online traders. CAIT has been vocally criticizing e-commerce platforms and the significant discounts they offer. CAIT approached CCI in 2020, advocating the abuse of market power by e-commerce platforms. In its petition, CAIT argued that the e-commerce platform forced vendors to be preferred vendors and promoted more than non-preferred vendors.
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