Amazon and Flipkart breached competition laws, investigation reveals

New Delhi: Reports highlight that an Indian antitrust investigation revealed that Amazon and Flipkart of Walmart violated competition laws by granting advantages to certain sellers on their platforms. 

In 2020, The Competition Commission of India (CCI) initiated its probe, which unveiled that the two companies had set up an ecosystem favouring preferred sellers in search results over others.

The investigation commenced following a complaint lodged against them by Delhi Vyapar Mahasangh and therefore resulted in detailed reports indicating Amazon and Flipkart’s deep discounting strategy for anti-competitive practices such as preferential listings or promotions. 

These findings are setbacks to the two e-commerce giants who have been denying any blame while facing possible penalties. The CCI will decide on fines after examining their objections.

This happens even as both e-retail giants continue receiving criticism from smaller retailers for crippling their businesses. The case resembles similar scrutiny in the U.S., where Amazon is being sued by the Federal Trade Commission for alleged monopoly practices.