India launches antitrust raids on Amazon sellers Cloudtail, Appario: Report – Times of India

NEW DELHI: India’s antitrust physique launched raids on Thursday in opposition to two high home sellers of on-line retail big Inc over accusations of getting violated competitors legal guidelines, two sources with direct data of the matter advised Reuters.
Indian retailers, a key a part of Prime Minister Narendra Modi’s help base, have lengthy contended that Amazon’s platform largely advantages a number of huge sellers, with the agency partaking in predatory pricing that harms their companies.
The corporate says it complies with all Indian legal guidelines.
The precise nature of the purported violations prompting Thursday’s raids was not instantly clear. The 2 sellers have been Cloudtail and Appario, the sources stated on situation of anonymity, as the small print weren’t public.
Amazon, which has an oblique fairness stake in each, didn’t instantly reply to a request for remark. Cloudtail, Appario and the regulator, the Competitors Fee of India (CCI), additionally didn’t instantly reply to emailed queries.
One supply stated the raids, carried out in New Delhi and Bengaluru, associated to CCI’s investigation ordered in January 2020.
In that case, Amazon and rival Walmart’s Flipkart face accusations of anti-competitive practices, reminiscent of selling most well-liked sellers on web sites and giving precedence to listings by some sellers.
The businesses deny the accusations, and the antitrust investigation continues.
Amazon has beforehand stated it “doesn’t give preferential remedy to any vendor on its market,” and “treats all sellers in a good, clear, and non-discriminatory method”.
A Reuters investigation final yr, primarily based on Amazon paperwork, confirmed it had given preferential remedy for years to a small group of sellers, together with Cloudtail, and used them to bypass Indian legal guidelines.
The report confirmed Amazon had for years helped a small variety of sellers prosper on its platform, with discounted charges and serving to Cloudtail strike particular offers with huge tech companies.
The anti-trust physique advised a court docket the Reuters report corroborated proof it had acquired in opposition to Amazon.
In August, Amazon and Cloudtail determined the latter would stop to be a vendor from Might 2022.

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