Indian Lawmaker and Trade Group Demand Suspension of Amazon and Flipkart Over Antitrust Violation
ndian lawmaker Praveen Khandelwal and the Confederation of All India Traders urge the government to suspend Amazon and Flipkart operations due to alleged antitrust breaches. Investigations suggest these e-commerce giants may have violated local competition laws by favoring certain sellers and listings
India Lawmaker and Trade Group Call for Suspension of Amazon and Flipkart Operations Over Antitrust Violations
NEW DELHI, Sept 13 — A prominent lawmaker from India's ruling Bharatiya Janata Party (BJP) and a leading retailers' association have called on the government to suspend the operations of Amazon (AMZN.O) and Walmart’s (WMT.N) Flipkart in India, citing antitrust breaches.
Key Details:
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Antitrust Breaches: Reports from an Indian antitrust investigation, which remain unpublished, have allegedly found that Amazon and Flipkart violated local competition laws. The findings suggest that these companies have given preferential treatment to certain sellers and prioritized specific listings, thereby undermining competition.
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Lawmaker’s Response: Praveen Khandelwal, a BJP lawmaker and secretary general emeritus of the Confederation of All India Traders (CAIT), has stated that he plans to discuss the issue with the federal government and Commerce Minister Piyush Goyal. Khandelwal is advocating for immediate action, including the suspension of operations for Amazon and Flipkart, due to the adverse impact on the manufacturing sector and smaller retailers.
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Company Responses: Both Amazon and Flipkart have denied any wrongdoing and maintain that they comply with Indian laws. Neither company has commented specifically on the Competition Commission of India (CCI) reports.
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Trade Group's Stance: The CAIT, representing around 80 million shopkeepers, has long criticized the practices of Amazon and Flipkart, arguing that their operations harm small retailers and distort market competition.
The situation underscores ongoing tensions between large e-commerce platforms and local retailers, highlighting broader concerns about competition and regulatory compliance in India’s rapidly growing digital marketplace.
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