A former leading seller on Amazon in India is seeking to have a judge dismiss an antitrust investigation that revealed violations of local competition regulations by the US e-commerce giant and some of its sellers, according to court documents released on Thursday.
The antitrust inquiries overseen by the Competition Commission of India (CCI) determined that both Amazon and Walmart's Flipkart, along with several of their sellers and smartphone manufacturers, have breached local competition legislation by favoring select online retailers and prioritizing specific product listings, as reported by Reuters.
These conclusions stem from a Reuters investigation conducted in 2021, which utilized Amazon’s confidential documents. The investigation revealed that the company provided advantaged treatment for years to a limited group of sellers, allowing them to circumvent Indian regulations. Amazon has denied any misconduct.
One of the sellers, Appario, which has no longer been selling on Amazon, initiated legal action against the CCI in the Karnataka High Court, asserting that the investigation findings naming it should be dismissed, according to court filings.
Details regarding the reasons for this legal challenge have not yet been disclosed. This lawsuit represents the initial judicial contestation to the CCI's investigation that began in 2020 and presents a significant hurdle for Amazon in a crucial market.
In its legal claim, Appario also requested that a CCI directive requiring it to provide financial documents post-investigation be annulled, as per court reports.
Requests for statements from Appario, Amazon, and the competition authority have not been answered. Amazon has reiterated that it does not favor any particular seller and adheres to all regulations, although in October 2022, it indicated that Appario would stop selling products on its platform within the year.
The Reuters investigation indicated that Appario was labeled internally as a "special" vendor, benefiting from lower fees and access to Amazon’s international retail tools, which facilitated tasks such as inventory management.
In 2022, the CCI conducted raids on Appario and other sellers as part of its ongoing investigations.