India to expedite Amazon, Flipkart antitrust probe
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India’s antitrust watchdog plans to expedite a restarted probe into allegations of anti-competitive behavior at Amazon.com Inc and Walmart Inc’s Flipkart, as it intensifies scrutiny of big-tech firms, two people close to the matter said.
The comments come as major U.S. technology firms including Twitter Inc and Facebook Inc are at loggerheads with the government over issues such as data privacy bills and policies some industry executives have called protectionist.
The Competition Commission of India (CCI) initiated a probe in January last year on the basis of a complaint alleging Amazon and Flipkart promoted select sellers on their e-commerce platforms and that deep discounts stifled competition.
The companies have denied wrongdoing.
Near-immediate legal challenges from the pair stalled the probe for over a year until a court last week allowed it to resume, having dismissed arguments that the CCI lacked evidence.
Though Amazon and Flipkart are likely to appeal, the CCI plans to demand information from them related to the allegations “as quickly as possible”, said one of the people, who declined to be identified due to the sensitivity of the matter.
The investigation “will be expedited”, the person said. Such investigations in India typically take months to complete.
Amazon declined to comment. Flipkart and the CCI did not respond to requests for comment.
“Cases involving digital firms are getting a priority at CCI as they can have a significant impact on the economy and Indian startups,”
The CCI is speeding up all cases involving big technology firms, including by deploying additional officers for some cases and working to more stringent internal deadlines, said the two people, who are familiar with the watchdog’s thinking.
“Cases involving digital firms are getting a priority at CCI as they can have a significant impact on the economy and Indian startups,” said one of the people.
Last year, the CCI began reviewing allegations of Google abusing the position of its Android operating system in the smart TV market, and is likely to soon order a comprehensive antitrust investigation, the people said.
Google declined to comment.
Such a probe would be the third against Google, with the Alphabet Inc unit already battling cases relating to Android as well as its payment app.
The CCI is also investigating practices at MakeMyTrip Ltd and privacy policy changes at Facebook’s WhatsApp.The probe into Amazon and Flipkart is restarting at a time when both are battling accusations from offline retailers that their complex business structures allow them to circumvent foreign investment rules for e-commerce.
Amazon, which has said it “does not give preferential treatment to any seller”, told the court here it disagreed with the report.
The antitrust body will examine the Reuters report and could use it as part of its investigation, one of the people said.
“The CCI’s plan to move faster on such cases is in line with other antitrust regulators globally that are investigating digital markets like e-commerce and online search, which are dynamic and evolving fast,” said an Indian antitrust lawyer who represents tech firms.
Questions & Answers
Q.What specific allegations are Amazon and Flipkart facing in this antitrust probe?
What specific allegations are Amazon and Flipkart facing in this antitrust probe?
The complaint alleges that Amazon and Flipkart promoted select sellers on their e-commerce platforms. It also claims that deep discounts offered by these companies stifled competition in the market.
Q.Why was the probe into Amazon and Flipkart stalled for over a year?
Why was the probe into Amazon and Flipkart stalled for over a year?
The probe was stalled for over a year due to near-immediate legal challenges from both companies. They argued that the Competition Commission of India (CCI) lacked sufficient evidence to proceed with the investigation.
Q.What is the broader context for the Competition Commission of India's decision to expedite this probe?
What is the broader context for the Competition Commission of India's decision to expedite this probe?
The CCI is intensifying scrutiny of big-tech firms, expediting all such cases, and giving priority to digital firms. This aligns with other global antitrust regulators investigating fast-evolving digital markets.
Q.What other major technology firms are currently under investigation by the Competition Commission of India?
What other major technology firms are currently under investigation by the Competition Commission of India?
The CCI has ongoing cases or probes involving Google, specifically regarding its Android operating system and payment app, and is also investigating practices at MakeMyTrip Ltd and WhatsApp's privacy policy changes.
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