The government can issue summons to e-commerce platforms Amazon and Flipkart for questioning. Reuters quoted sources as saying that the government will issue summons to the officials of these companies as part of the investigation into violations of the Foreign Investment Law.
Recently, the Enforcement Directorate (ED) raided some sellers associated with these companies. It is alleged that companies control the inventory (stock) through some selected sellers.
After the raid on sellers of Amazon and Flipkart last week, ED is now preparing to call company officials. ED is also examining the documents found during the raid.
- In the investigation that continued till Saturday, the government has found the allegations of violation of foreign investment rules to be true.
- ED will also investigate the business data of sellers and their communication with these e-commerce platforms in the last 5 years.
Foreign e-commerce platforms can act as marketplaces
As per Indian regulations, foreign e-commerce platforms cannot hold inventory in India, they can only operate as online marketplaces.
In India's $70 billion (about Rs 5.91 lakh crore) e-commerce market, the sales of Amazon and Flipkart are increasing rapidly.
According to Datum Intelligence, last year Flipkart had 32% market share and Amazon had 24% market share in the Indian e-commerce sector.
,
Read this news also…
Zomato-Swiggy termed the news of violation of competition norms as misleading: Companies said- they are committed to following the competition law.
Food Delivery platforms Zomato and Swiggy have termed the news of violation of competition norms as misleading. Recently, it was said in media reports that the Competition Commission of India i.e. CCI has found Zomato and Swiggy guilty of violating competition norms i.e. competition laws.
Zomato said in the statement that it has been under CCI investigation since April 2022, under which the Director General of CCI was required to investigate the matter further. Click here to read the full news…
Graphics Source: VaskarAssets
