The Competition Commission of India (CCI) has found that US-based e-commerce firm Amazon and Walmart's Flipkart have violated competition laws by favouring select sellers on their shopping websites, according to an exclusive by Reuters.
The Indian antitrust investigation in an investigation ordered in 2020 reportedly found that Amazon and Flipkart allegedly promoted certain sellers with which they had business arrangements, and gave priority to certain listings.
The investigation was done on the back of a complaint from the Delhi Vyapar Mahasangh, which is an affiliate of the country's biggest trading body, Confederation of All India Traders (CAIT), which represents 80 million retailers in the country.
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The CCI investigators said that the two companies have reportedly created an atmosphere where certain sellers, who were preferred, were placed higher in search results, casting out others.
The report on Amazon consists of 1027 pages and the report on Flipkart consists of 1,696 pages. Both were dated August 9th.
The CCI reportedly stated that each of the anti-competitive practices allegedly against these companies was investigated and was found to be true. Reuters noted that it was being reported for the first time.
It is reported that ordinary sellers remained as just database entries, both reports said in an identical conclusion.
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It is said that Amazon and Flipkart will review the report and file their objects before CCI staff decides to fine them.
Amazon, Flipkart, as well as CCI, did not respond to the queries put forth by Reuters. They have previously denied wrongdoing and said their practices are in line with Indian laws.
The recent investigation is a huge setback for Amazon and Flipkart as they continue to face criticism for their business practices from smaller retailers, who have stated that their businesses have suffered in recent years due to the enormous amounts of discounts being offered online.
Recently, the Union Commerce Piyush Goyal lashed out at Amazon stating that the company is involved in predatory practices as they made a loss of Rs 6000 crore.
He stated that many small retailers in the country have suffered because of the e-commerce firms in the country.
