Amazon flouted regulations in India: Report

Documents used by Amazon.com executive Jay Carney for preparation ahead
of his discussion with India’s ambassador to the United States in April, 2019, contained, among other things, a rather crucial fact: that around 33 sellers in
Amazon accounted for about one-third of the value of all goods sold on the
company’s website, according to a report by Reuters.

Indian sellers associated with Amazon, both physical and online, have
long since alleged that the corporation allows a smaller number of big sellers
on its platform to score big numbers by having discounted fees and cutting
special deals, with tech manufacturers such as Apple, when it comes to profit,
as well as allowing for predatory pricing to continue.

As per Reuters, such a draft of meetings, presentation slides, and
business reports reflect analyses of the concurrent situations in the country.
A specific document is stated to be even sizing up the administration for its potential loopholes in observation.

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The conglomerate, however, rejected the claim. It says that it abides by the
Indian government’s stipulation, which specifically state that an e-commerce
company can only connect sellers and buyers, unlike in the US, where
Amazon can act both as a retail entity and a seller, who can sell goods
directly to consumers.

Reportedly, it further observed that its business activities fall in
line with Indian law, but at the same time noted that there might be contrast in
interpretation of the said law between the company and the Indian government,
risking suspension, penalties or permanent closure in the long run.

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Amazon’s operations found further steam in their engine in August, 2014
after collaborating with an entity by one of India’s major tech personalities
NR Narayana Murthy, leading to the establishment of a seller named Cloudtail.

One of the areas Amazon, in collaboration with Cloudtail, targeted is
the smartphone market in India.

Deals facilitated with smartphone makers as well as online discounts
by Cloudtail, reportedly, hit the offline smartphone sellers hard.