How Amazon Continued To Play Fast and Loose With E-Commerce Regulations In India

Amazon rules it out!

A Reuters exclusive uncovered some facts about Amazon and its regulatory breaches in India. The report suggests that the company may have adopted strategies to marginalise small retailers against bigger ones to earn a profit.

Apparently, 25 sellers on the platform in India account for two-thirds of the value of all the goods sold. Two of them make up 35% are Amazon affiliates themselves. India’s FDI policy allows investment only in the marketplace model of e-commerce, which means that if Amazon becomes a seller, it would violate the rules.

The Competition Commission of India had also ordered an investigation into Amazon’s anti-competitive practices based on dissimilarities in discounted sales and commission margins. As expected, Amazon has denied all these charges calling them factually incorrect. With an FTC investigation in the US and an ongoing case with the RIL-Future merger, Amazon faces serious challenges.

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