By A prominent lawmaker from India’s ruling Bharatiya Janata Party (BJP) and a major retailers’ association have called for the suspension of operations of e-commerce giants Amazon and Walmart-owned Flipkart in India, following reports of antitrust violations. This development marks a significant escalation in the ongoing tension between traditional retailers and global e-commerce platforms in one of the world’s fastest-growing online markets.
Praveen Khandelwal, a BJP lawmaker and secretary general emeritus of the influential Confederation of All India Traders (CAIT), told Reuters on Friday that he plans to hold discussions with the federal government and Commerce Minister Piyush Goyal to push for immediate action against these companies. “The practices of these companies are greatly damaging our manufacturing sector,” Khandelwal stated, emphasizing the need for swift intervention.
The call for suspension comes in the wake of a Reuters exclusive report revealing that confidential antitrust investigation reports have found Amazon and Flipkart in violation of local competition laws. These reports, which are not public, allegedly show that both companies have been giving preferential treatment to select sellers and prioritizing certain listings, actions that are seen as detrimental to fair competition.
CAIT, representing approximately 80 million shopkeepers across India, has long been a vocal critic of the business practices employed by Amazon and Flipkart. The organization argues that these practices unfairly disadvantage smaller retailers, a constituency that forms a crucial voting bloc for Prime Minister Narendra Modi’s ruling party.
The timing of these allegations is particularly significant, coming ahead of key state elections in the industrial hubs of Maharashtra and Haryana. The retail sector’s concerns could potentially influence political discourse and policy decisions in the run-up to these elections.
Neither Amazon India nor Flipkart responded to requests for comment on the calls for suspension. Both companies have previously denied any wrongdoing and maintained that they comply with Indian laws. They have not yet commented on the Competition Commission of India (CCI) reports cited in the Reuters investigation.
The current controversy is reminiscent of a 2021 Reuters investigation that uncovered internal Amazon documents showing the company had given preferential treatment to a small group of sellers, some of whom were termed “Special Merchants,” for years. This practice was allegedly used to bypass Indian laws designed to protect smaller retailers.
Adding to the pressure on e-commerce companies, Commerce Minister Goyal publicly criticized Amazon last month, suggesting that the company’s investments often serve to cover its losses rather than providing significant benefits to the Indian market.
Credit: Reuters
