The Indian Trade Organization, which represents 150,000 mobile phone stores, urged Prime Minister Narendra Modi on Monday to investigate Amazon’s business practices in the country and impose a daily cap on the online smartphone sales of individual sellers.
The organization cited a special report released last month in a letter to Modi, which showed that Amazon has been giving preferential treatment to a small number of sellers on its Indian platform for many years, using them to circumvent the country. Strict foreign investment regulations.
The report is based on Amazon internal documentation between 2012 and 2019.
The All India Mobile Retailers Association (AIMRA) wrote in the letter: “We are aware of Amazon’s thinking process and strategy.” The letter said that these documents “have shown that Amazon is doing business in India and its strategy cleverly avoids regulation. Institutions and politicians.”
AIMRA urges the government to “suspend all Amazon activities in India” until the company’s actions are investigated.
Amazon said it does not give preferential treatment to any sellers in the market and has always abided by Indian laws.
On Monday, Amazon and Modi’s offices did not immediately respond to requests for comment.
Indian retailers are an important part of Modi’s support base and have long claimed that Amazon and Walmart’s Flipkart violated federal regulations and their business practices hurt small traders. The two companies, which operate the two largest e-commerce platforms in India, have denied these allegations.
Amazon documents reviewed by Reuters show that the company has helped a small number of sellers prosper on its website, reduced costs, and helped to reach special deals with large technology manufacturers such as Apple.
The document also shows that at the beginning of 2019, about 35 of Amazon’s 400,000 sellers in India accounted for about two-thirds of its online sales.
AIMRA stated in the letter that the government should limit a single seller’s daily smartphone sales on Amazon and Flipkart to Rs. 500000.
The organization also claimed that US companies promoted sales on its platform through preferred sellers and asked the government to investigate the relationship between smartphone brands and these sellers.
Flipkart did not respond to a request for comment. In a special report released last month, Amazon stated in a statement that it is helping small businesses in India and “treats all sellers in a fair, transparent and non-discriminatory manner.”
Brick-and-mortar retailers said that with the rapid development of online smartphone sales, they are struggling to compete with technology giants. According to data from Forrester Research, by 2019, 44% of smartphones are sold online in India, with Amazon and Flipkart occupying a dominant position.
Thomson Reuters 2021 ©
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