New Delhi, Nov 8: The Enforcement Directorate (ED), has launched raids on sellers linked to Amazon and Flipkart, owned by Walmart.
The operation, covering major cities like Delhi, Mumbai, Hyderabad, and Bengaluru, aims to investigate possible violations of foreign investment rules.
Sources say the raids are part of a broader inquiry into how these e-commerce platforms may have breached foreign exchange laws. This follows a recent antitrust report that found Amazon and Flipkart, along with some sellers, favored specific sellers, violating competition laws.
The ED is looking into whether the platforms indirectly influence product prices, which could give some sellers an unfair advantage. The raids occurred at 19 locations across India, but no seller names have been released.
Both Amazon and Flipkart have not yet commented on the situation. This investigation adds to the regulatory challenges these companies face in India, a key market for their growth. Indian law requires them to operate as neutral platforms without direct control over inventory, but a leaked antitrust report suggests they maintain significant influence over their sellers.
Furthermore, India’s commerce minister criticized Amazon for its business practices, hinting at possible “predatory pricing” tactics. This increasing scrutiny reflects the challenges foreign e-commerce companies encounter in India's competitive retail environment.
