Indian Mobile Retailers Call for Amazon Probe, Cap on Online Smartphone Sales

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An Indian commerce group representing 150,000 cell phone shops on Monday urged Prime Minister Narendra Modi to research Amazon’s enterprise practices within the nation and impose a each day cap on a single vendor’s on-line smartphone gross sales.

In a letter despatched to Modi, the group cited a special report printed final month that exposed Amazon has for years given preferential remedy to a small group of sellers on its Indian platform, utilizing them to avoid the nation’s strict overseas funding laws.

The report was primarily based on inner Amazon paperwork dated between 2012 and 2019.

“We had been already conscious of Amazon’s thought course of and technique,” the All India Cell Retailers Affiliation (AIMRA) wrote within the letter. The paperwork, the letter stated, “have revealed that Amazon is doing enterprise in India with the technique of deftly dodging the regulators and politicians”.

AIMRA urged the federal government to “droop all Amazon actions in India” till there’s an investigation into the corporate’s practices.

Amazon says it would not give preferential remedy to any vendor on its market and has at all times complied with Indian regulation.

Amazon and Modi’s workplace didn’t instantly reply to a request for touch upon Monday.

Indian retailers, an important a part of Modi’s help base, have lengthy alleged that Amazon and Walmart’s Flipkart flout federal laws and that their enterprise practices damage small merchants. The businesses, which run the 2 largest e-commerce platforms in India, deny the allegations.

The Amazon paperwork reviewed by Reuters confirmed the corporate helped a small variety of sellers prosper on its web site, discounted their charges and helped one lower particular offers with large tech producers equivalent to Apple.

Some 35 of Amazon’s greater than 400,000 sellers in India in early 2019 accounted for round two-thirds of its on-line gross sales, the paperwork additionally confirmed.

AIMRA stated in its letter the federal government ought to cap a single vendor’s each day smartphone gross sales on Amazon and Flipkart at Rs. 5 lakhs.

The group additionally alleges the US companies promoted gross sales on their platforms by means of most popular sellers, asking the federal government to research tie-ups between smartphone manufacturers and these sellers.

Flipkart didn’t reply to a request for remark. Within the particular report printed final month, Amazon stated in an announcement that it was serving to small companies in India and that it “treats all sellers in a good, clear, and non-discriminatory method”.

Brick-and-mortar retailers have stated they’re struggling to compete with the tech giants as on-line smartphone gross sales increase. By 2019, 44 % of smartphones in India had been being offered on-line, with Amazon and Flipkart dominating the gross sales, in line with Forrester Analysis.

© Thomson Reuters 2021


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