The Competition Commission of India (CCI) recently ordered an investigation against Amazon and Flipkart for alleged competition law violations. The CCI body said that it was ordering a wider probe following a review of allegations that Amazon and Flipkart were promoting some “preferred sellers” and in turn hitting business of other smaller sellers.
The accusations against the companies was filed by Delhi Vyapar Mahasangh, a group that represents small and medium sized businesses which alleged that several of Amazon and Flipkart’s sellers were affiliated with or controlled by the companies themselves, either directly or indirectly.
The 11 page order stated, “The Commission is of the opinion that there exists a prime facie case which requires an investigation. The CCI also wants its investigations arm to probe the e-commerce companies’ discounting practices as well as their relationship with such sellers.”