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Amazon Calls For Not Altering Foreign E-Commerce Investment Rules: Report

Amazon Calls For Not Altering Foreign E-Commerce Investment Rules: Report

NDTV
Thursday, March 25, 2021 2:18 PM GMT

Amazon has said it "does not give preferential treatment to any seller on its marketplace," and that it "treats all sellers in a fair, transparent, and non-discriminatory manner".

Amazon asked the government on Thursday not to change e-commerce foreign investment rules until investigations into its business practices had been concluded, two sources familiar with the discussions told Reuters. The commerce ministry met e-commerce players after allegations by retailers, which are a crucial part of Prime Minister Narendra Modi's support base, that Amazon and Walmart's Flipkart create complex structures to bypass federal foreign investment rules and damage small traders. Both companies deny any wrongdoing and say they are helping small businesses in India. New Delhi has been considering revising e-commerce foreign investment rules for weeks. The last time they were changed, in 2018, it forced Amazon and Flipkart to rework their business structures and soured trade relations between India and the United States. Last month a Reuters report, based on internal Amazon documents, revealed that the U.S. firm had for years given preferential treatment to a small group of sellers on its platform, giving them discounted fees and helping one cut special deals with big tech manufacturers.  Amazon has said it "does not give preferential treatment to any seller on its marketplace," and that it "treats all sellers in a fair, transparent, and non-discriminatory manner". During Thursday's meeting, an Amazon executive told commerce ministry officials that the Competition Commission of India (CCI) and the Enforcement Directorate were probing the allegations and "it would be premature to make any policy change" until those proceedings have concluded, two sources with direct knowledge of the discussions said.
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