CCI Seizes Data, Documents From Amazon, Flipkart Sellers After Raids: Report

Amazon and Flipkart both face allegations of promoting preferred sellers on their websites and giving priority to listings of some sellers

The CCI continued raids on second day over suspected violations of competition law. Image: Getty ( Image Source :Getty )

New Delhi: The Competition Commission of India (CCI), which conducted raids on early Thursday on Amazon’s platform, Cloudtail and Appario, seized data and documents, quoting sources, news agency Reuters reported on Friday.

The investigators continued raids on second day over suspected violations of competition law, the report mentioned.

Barring Amazon, the CCI also raided some sellers of its rival Flipkart following allegations the sellers and marketplaces had breached competition law.

Amazon and Flipkart both face allegations of promoting preferred sellers on their websites and giving priority to listings of some sellers.

The sources said that the CCI investigators on Friday collected emails, documents, and data from computers and quizzed several executives of the seller firms.

However, the regulator does not divulge details of its raids public.

The CCI, Amazon, and Flipkart did not respond to Reuter’s request for comment. The two sellers of Amazon, Cloudtail and Appario, also did not respond. The US e-commerce major holds an indirect equity stake in the two sellers.

For long, local retailers have contended that Amazon’s platform largely benefits a few big sellers. They alleged that this practice by Amazon and Flipkart is causing harm to their businesses, as the e-commerce firms are engaged in in predatory pricing.

On the other hand, Amazon said that it complies with all Indian laws.

The local traders also levelled the same allegation against Walmart-backed Flipkart, Amazon’s main Indian rival. They alleged that the e-tailers only promote preferred sellers on their sites, hence, give priority to listings by some sellers.

An investigation by Reuters last year revealed that Amazon had given preferential treatment for years to a small group of sellers, like Cloudtail, and used them to bypass Indian laws.

According to the investigation, Amazon for years had helped a small number of sellers prosper on its platform with discounted fees and also helped Cloudtail strike special deals with big tech firms.