Antitrust Probe Reveals Amazon and Flipkart's Unfair Practices in India

Indian antitrust investigations have determined that Amazon and Flipkart violated local competition laws. They gave preferential treatment to certain sellers, prioritized specific listings, and offered deep discounts, disadvantaging other firms. The Competition Commission of India's reports detail these practices, revealing an uncompetitive ecosystem within the platforms.

An Indian antitrust investigation has found that Amazon and Walmart's Flipkart breached local competition laws by showing favoritism to certain sellers, prioritizing specific listings, and offering steep discounts that hurt other companies.

According to the Competition Commission of India (CCI), detailed in two non-public reports reviewed by Reuters, Amazon favored six sellers while Flipkart had 33 preferred sellers receiving marketing and warehousing services at minimal rates, breaching antitrust laws.

The CCI emphasized that this practice created an unequal ecosystem where no other sellers could survive. Furthermore, exclusive product launches with technology firms and deep discounting strategies were tactics used by both companies to dominate the market, disrupting smaller and traditional retailers.

(With inputs from agencies.)