India orders antitrust probe of Amazon, Walmart's Flipkart

guest · Jan 13, 2020

India orders antitrust probe of Amazon, Walmart's Flipkart
January 13, 2020
https://www.reuters.com/article/us-...obe-of-amazon-walmarts-flipkart-idUSKBN1ZC1BO

India ordered an investigation of Amazon.com Inc and Walmart’s Flipkart on Monday over alleged violations of competition law in the latest setback for U.S. e-commerce giants operating in the country.

The Competition Commission of India (CCI) said it was ordering a wider probe following a review of allegations that Amazon and Flipkart were promoting some “preferred sellers” and in turn hurting business for other, smaller sellers.

Flipkart is “fully compliant” with all laws and is currently reviewing the CCI order, Senior Vice President Rajneesh Kumar said.
The complaint against the two companies was filed by Delhi Vyapar Mahasangh, a group representing small- and medium-sized businesses. They alleged that several of Amazon and Flipkart’s preferred sellers were affiliated with, or controlled by, the companies themselves, either directly or indirectly.

The CCI said its investigation unit should complete the probe within 60 days, but typically such cases have taken far longer.
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guest · Jan 16, 2020

Amazon tycoon Bezos flies into internet trading storm in India
January 15, 2020
https://techxplore.com/news/2020-01-amazon-tycoon-bezos-flies-internet.html

Angry Indian street traders vowed Wednesday to stage protests against the world's richest man Jeff Bezos as the Amazon tycoon started a visit just as authorities launched an anti-trust investigation into e-commerce giants.

Media reports said Bezos has sought a meeting with India's Prime Minister Narendra Modi, but neither the government nor Amazon would confirm if talks would be held.
Amazon has said it will cooperate with the investigation and was "confident" it was operating legally.
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guest · Jan 16, 2020

During Bezos visit, India minister says Amazon's $1 billion investment is no big favour
January 16, 2020
https://techxplore.com/news/2020-01-amazon-tycoon-bezos-flies-internet.html

Amazon (AMZN.O) hasn’t done India any big favours by announcing a new $1 billion investment, its trade minister said on Thursday, laying bare tensions with the U.S. online retail giant during a visit to the country by its CEO Jeff Bezos.

Bezos said on Wednesday Amazon would invest $1 billion to bring small businesses online in the country, adding to the $5.5 billion the company had committed since 2014.

“They may have put in a billion dollars but then if they make a loss of a billion dollars every year then they jolly well have to finance that billion dollars,” Indian trade minister Piyush Goyal told a security conference in New Delhi.
“So it’s not as if they are doing a great favour to India when they invest a billion dollars.”
MODI MEETING UNLIKELY
Amazon’s marketplace unit in India reported a loss of 56.85 billion rupees ($802 million) in the fiscal year ending March 2019 [...]

“How can a marketplace make such a big loss, unless they are indulging in predatory pricing or some unfair trade practices? These are real questions that need answers,” Goyal said.
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guest · Feb 10, 2020

Amazon challenges India antitrust probe in court: filing
February 10, 2020
https://www.reuters.com/article/us-...antitrust-probe-in-court-filing-idUSKBN2041EQ

Amazon.com Inc has begun legal action in India to quash an antitrust investigation against the company, saying it could cause “irreparable” loss and damage to its reputation, according to its court filing seen by Reuters.

Last month the Competition Commission of India (CCI) ordered an investigation of Amazon and rival Flipkart, owned by Walmart, over alleged violations of competition law and certain discounting practices.
Amazon and Flipkart have faced mounting criticism from India’s brick-and-mortar retailers, which accuse the U.S. giants of violating Indian law by racking up billions of dollars of losses to fund deep discounts and discriminating against small sellers. The companies deny the allegations.
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guest · Feb 14, 2020

India court stalls Amazon, Flipkart antitrust probes: lawyers
February 14, 2020
https://www.reuters.com/article/us-...ipkart-antitrust-probes-lawyers-idUSKBN2080XR

An Indian antitrust investigation of Amazon.com Inc and Walmart’s Flipkart has been put on hold by a court, three lawyers involved in the proceedings told Reuters on Friday.

The CCI ordered its probe after a New Delhi-based trader group complained that the e-commerce giants were promoting select sellers and in turn hurting business for other smaller players.
Over three days of hearings in the Bengaluru court, Amazon denied the allegations and argued that CCI did not have sufficient evidence to order the probe.

Amazon and Flipkart have faced mounting criticism from Indian retailers which accuse them of violating local laws by racking up billions of dollars of losses to fund deep discounts and discriminating against small sellers.
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guest · Feb 21, 2020

mood said: ↑

Amazon challenges India antitrust probe in court: filing
February 10, 2020
https://www.reuters.com/article/us-...antitrust-probe-in-court-filing-idUSKBN2041EQ
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After Amazon, Walmart's Flipkart challenges India antitrust probe
February 21, 2020
https://uk.reuters.com/article/us-i...hallenges-india-antitrust-probe-idUKKBN20F0RV

Walmart’s Flipkart has filed a legal challenge against an antitrust investigation ordered against the company in India, a court filing seen by Reuters showed, following a similar petition by its rival Amazon.com Inc.

The filing comes days ahead of U.S. President Donald Trump’s visit to India, and amid U.S. concerns about India’s tightening of foreign investment rules for the ecommerce sector.
In its Feb. 18 court filing in southern Bengaluru city, which is not public, Flipkart argues the CCI ordered its probe without initial evidence that the company’s practices were harming competition.

Flipkart said the CCI order was “perverse (and) passed without any application of mind”.
A spokesman for Flipkart did not comment on the contents of the filing, saying it was a “procedural matter”. The case is likely to be heard next week.
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guest · Apr 7, 2020

Indian traders ask court for Amazon, Flipkart antitrust probe restart
April 7, 2020
https://uk.reuters.com/article/us-a...lipkart-antitrust-probe-restart-idUKKBN21P101

An Indian retail group has asked a court to allow the restart of an antitrust investigation into Amazon.com Inc and a Walmart unit that is on hold following a legal challenge by the companies, a court filing seen by Reuters showed.

The appeal will likely be heard later this month at a time when both Amazon and Flipkart are battling slowing sales and logistical challenges during India’s lockdown to tackle the coronavirus which has resulted in supply chain disruptions.
The Competition Commission of India (CCI) in January ordered an investigation into business practices of the two e-commerce giants, but the High Court in Karnataka state put it on hold after Amazon argued the CCI did not have sufficient evidence to order it.

“The present case before the CCI is one which involves matters of grave public interest and economic interest, and no stay should have been granted,” the group said in its filing, which was made before India entered a nationwide lockdown late last month and has previously not been reported.
The investigation, if restarted, will be the latest setback for the U.S. companies that were last year hit with more stringent foreign investment rules.
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guest · Aug 26, 2020

Exclusive: Amazon faces new antitrust challenge from Indian online sellers, legal documents show
August 26, 2020
https://www.reuters.com/article/us-...ne-sellers-legal-documents-show-idUSKBN25M193

A group of more than 2,000 online sellers has filed an antitrust case against Amazon (AMZN.O) in India, alleging the U.S. company favours 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.

In January, the Competition Commission of India (CCI) had ordered an investigation of Amazon and rival Flipkart, owned by Walmart (WMT.N), over alleged violations of competition law and certain discounting practices, which Amazon is challenging, according to court filings.
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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.
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