Amazon and Flipkart Found Guilty of Antitrust Violations in India

An Indian antitrust investigation found that Amazon and Walmart's Flipkart favored select sellers, violating local competition laws. The 2020 CCI investigation showed both companies gave preferential listing to certain sellers, impacting other businesses. Amazon and Flipkart deny wrongdoing. Potential fines are under consideration.

An Indian antitrust investigation has revealed that U.S. e-commerce giants Amazon and Walmart's Flipkart violated local competition laws by favoring select sellers on their platforms, according to confidential reports seen by Reuters.

The Competition Commission of India (CCI) ordered an investigation in 2020 into claims that Amazon and Flipkart promoted certain sellers with business arrangements, resulting in their listings appearing higher in search results, thus disadvantaging other sellers. In their respective reports on Amazon and Flipkart, both dated Aug. 9, the CCI investigators found significant evidence to support these claims.

The reports concluded that 'each of the anti-competitive practices alleged... were investigated and found to be true.' They criticized the platforms for creating an ecosystem where ordinary sellers were relegated to mere database entries. Amazon and Flipkart, as well as the CCI, have not responded to Reuters' queries but have previously denied any wrongdoing. Both companies will review the findings and may file objections before CCI staff decide on potential fines.

(With inputs from agencies.)