India’s Competition Commission (CCI) has determined that Amazon and Flipkart, a Walmart subsidiary, breached local antitrust laws by giving preferential treatment to certain sellers on their platforms. This conclusion follows a CCI investigation that began in 2020, prompted by complaints that both companies were favoring select sellers, thus disadvantaging smaller competitors. The findings are detailed in two extensive reports: one for Amazon, spanning 1,027 pages, and another for Flipkart, covering 1,696 pages. The reports reveal that both companies implemented strategies that allowed preferred sellers to gain prominent visibility in search results, thereby hindering the competitiveness of other retailers. The CCI confirmed that the alleged anti-competitive practices were substantiated, highlighting that smaller sellers were effectively sidelined.The investigation originated from a complaint by the Delhi Vyapar Mahasangh, a trade body representing millions of retailers. The organization supports the CCI's findings and plans to present them to the federal government. As major players in India’s rapidly growing e-retail market, valued between $57 billion and $60 billion in 2023 and expected to surpass $160 billion by 2028, Amazon and Flipkart are facing heightened scrutiny. The CCI report also noted that the aggressive discounting practices of both companies might negatively impact market competition. Despite legal challenges and the Supreme Court of India’s decision in 2021 to allow the inquiry, Amazon and Flipkart have denied any legal violations. Nonetheless, Amazon is set to increase its investment in India to $26 billion by 2030 and aims to facilitate $20 billion in merchandise exports from the country by 2025.
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