Ex-Amazon Seller Appario Files Lawsuit to Dismiss Antitrust Allegations

Appario, a former top seller on Amazon’s India platform, has filed a lawsuit in the Karnataka High Court to quash an antitrust investigation that found both Amazon and several of its sellers in breach of Indian competition laws, according to court records reviewed on Thursday.

The lawsuit challenges findings from the Competition Commission of India (CCI) that accused U.S. eCommerce giant Amazon and Walmart’s Flipkart, along with certain smartphone brands and online sellers, of violating local competition rules by giving preferential treatment to select sellers, as reported by Reuters. The CCI’s investigation, which began in 2020, found that these companies favored particular listings on their platforms to the detriment of smaller sellers.

The legal challenge from Appario marks the first court case stemming from the CCI’s probe, which poses a significant obstacle for Amazon in India, one of its largest and most critical markets. The company has previously denied any wrongdoing, stating that it complies with all applicable laws and regulations in the country.

Related: India’s Antitrust Report: How Did Amazon and Flipkart Violate Competition Laws

According to court filings, Appario, which stopped selling on Amazon last year, is requesting the High Court to dismiss the CCI’s investigation report that implicates it in anti-competitive practices. The filings did not provide further details on the basis of the lawsuit. Additionally, Appario is seeking to overturn a separate CCI order that had required the seller to submit its financial records following the conclusion of the investigation.

This court case comes in the wake of a 2021 Reuters investigation, which revealed internal Amazon documents indicating that the company gave preferential treatment to a small group of sellers on its Indian platform. According to the report, Appario was one of these favored sellers, internally labeled as a “special” merchant. The documents showed that Appario was offered discounted fees and granted access to exclusive global retail tools, including those used for inventory management.

Amazon, which has consistently refuted claims of preferential treatment for any seller, announced in October 2022 that Appario would stop listing products on its site within a year.

Source: Reuters