An Indian trade association with 150,000 members owning mobile phone stores has asked Prime Minister Narendra Modi to probe Amazon’s business practices in the country, Reuters reported on Monday (March 1).
The All India Mobile Retailers Association (AIMRA) sent a letter to Modi and asked the court to institute a daily cap on any one seller’s mobile sales. It further said that Amazon has been extending special treatment to preferred sellers for many years.
By doing this, Amazon sidestepped India’s strict regulations regarding foreign investors, per Reuters. The letter referred to a Reuters February special report.
“We were already aware of Amazon’s thought process and strategy,” the letter said, further indicating that documents show that Amazon is “doing business in India with the strategy of deftly dodging the regulators and politicians.”
According to documents reviewed by Reuters, Amazon assisted some merchants in performing better on its website by reducing fees and helping them negotiate special big tech deals. AIMRA has asked the court to pull the plug on Amazon’s Indian operations until an investigation commences.
AIMRA said in its letter the government should impose caps on any one seller’s daily mobile eCommerce sales, with Amazon and Walmart-owned online retailer Flipkart at 500,000 rupees ($6,829).
Amazon maintained that preferential treatment to not extended to any seller on its marketplace. It also said that it always obeys Indian law, per Reuters.
Amazon and Flipkart operate the two largest eCommerce platforms in India. Both deny the allegations.
AIMRA also accuses both U.S. firms of advertising sales on their platforms through preferred sellers. The trade group is also asking the Indian government to investigate partnerships between smartphone brands and these sellers.
A group of Indian retailers — the Confederation of All India Traders — in April appealed a court order that paused an antitrust investigation into Amazon and Flipkart.
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