The Competition Commission of India (CCI) on Thursday morning raided the locations of major sellers selling products on Amazon and Walmart’s company Flipkart’s e-commerce platform. The raids took place at two sellers of Amazon and Walmart’s Flipkart in Delhi and Bangalore.
It is alleged that both the companies favored these sellers by providing unethical facilities on their online platforms, which enabled them to sell more products than other sellers. Considering these allegations against the free competition of the market, the Commission has been investigating since January 2020.
There were several allegations against Amazon and Flipkart by Indian retailers. According to them, large sellers get special preference, similar products are sold at a lower price, e-commerce companies also help them with data related to the buying habits of customers stored on their websites.
Why the suspicion of fraud increased
1.) 4,00,000 sellers were selling their goods on Amazon in 2019.
2.) 35 sellers were doing two-thirds of the sales, even in two-thirds, 35 percent of the sales were from Cloudtail and Apario alone.
3.) To protect its image last year, Amazon said that Cloudtail will no longer be a seller after May 2022.
Parliamentary committee will send summons to social media and tech companies
The Parliamentary Committee on Finance will be sent summons to the world’s leading tech, social media and e-commerce companies. Through this, their competition policies will be investigated and questioned. These companies include Apple, Google’s proprietary company Alphabet, Facebook’s proprietary company Meta, Amazon, Walmart’s Flipkart, Microsoft. It is believed that this step was taken in view of the deal being done by Elon Musk to buy Twitter.