Amazon, Flipkart CCI Antitrust Probe Said to Be Expedited as Tech Focus Intensifies

India’s antitrust watchdog plans to expedite a restarted probe into allegations of anti-competitive behaviour at Amazon and Walmart’s Flipkart, as it intensifies scrutiny of big-tech corporations, two individuals shut to the matter mentioned.

The feedback come as main US know-how corporations together with Twitter and Facebook are at loggerheads with the federal government over points such as knowledge privateness payments and insurance policies some trade executives have known as protectionist.

The Competition Commission of India (CCI) initiated a probe in January final 12 months on the premise of a grievance alleging Amazon and Flipkart promoted choose sellers on their e-commerce platforms and that deep reductions stifled competitors.

The firms have denied wrongdoing.

Near-immediate authorized challenges from the pair stalled the probe for over a 12 months till a courtroom final week allowed it to resume, having dismissed arguments that the CCI lacked proof.

Though Amazon and Flipkart are possible to attraction, the CCI plans to demand info from them associated to the allegations “as quickly as possible”, mentioned one of many individuals, who declined to be recognized due to the sensitivity of the matter.

The investigation “will be expedited”, the individual mentioned. Such investigations in India usually take months to full.

Amazon declined to remark. Flipkart and the CCI didn’t reply to requests for remark.

Priority

The CCI is rushing up all circumstances involving huge know-how corporations, together with by deploying further officers for some circumstances and dealing to extra stringent inner deadlines, mentioned the 2 individuals, who’re accustomed to the watchdog’s pondering.

“Cases involving digital firms are getting a priority at CCI as they can have significant impact on the economy and Indian startups,” mentioned one of many individuals.

Last 12 months, the CCI started reviewing allegations of Google abusing the place of its Android working system within the good TV market, and is probably going to quickly order a complete antitrust investigation, the individuals mentioned.

Google declined to remark.

Such a probe could be the third towards Google, with the Alphabet unit already battling circumstances relating to Android as nicely as its fee app.

The CCI can also be investigating practices at MakeMyTrip and privateness coverage modifications at Facebook’s WhatsApp.

Preferential therapy

The probe into Amazon and Flipkart is restarting at a time when each are battling accusations from offline retailers that their complicated enterprise constructions enable them to circumvent international funding guidelines for e-commerce.

In February, a Reuters investigation primarily based on Amazon paperwork confirmed the e-tailer for years gave preferential therapy to a small group of sellers on its Indian platform. While arguing to restart the probe, the CCI informed a courtroom in Karnataka state that the Reuters report corroborated proof.

Amazon, which has mentioned it “does not give preferential treatment to any seller”, informed the courtroom it disagreed with the Reuters report.

The antitrust physique will study the Reuters report and will use it as a part of its investigation, one of many individuals mentioned.

“The CCI’s plan to move faster on such cases is in line with other antitrust regulators globally that are investigating digital markets like e-commerce and online search, which are dynamic and evolving fast,” mentioned an Indian antitrust lawyer who represents tech corporations.

© Thomson Reuters 2021


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