The Confederation of All India Traders (<keyword id="853920" type="General" weightage="80" keywordseo="cait" source="Orion">CAIT</keyword>) has complimented the <keyword id="12291507" type="General" weightage="50" keywordseo="competition-commission-of" source="Orion">Competition Commission of</keyword> India (CCI) for conducting raids on the offices of <keyword id="2682122" type="General" weightage="50" keywordseo="cloudtail" source="Orion">Cloudtail</keyword> and Apario, both sellers of <keyword id="18635" type="General" weightage="100" keywordseo="amazon" source="Orion">Amazon</keyword>. It is a much awaited welcome step of CCI which will surely vindicate the substance of various complaints made by the CAIT against Amazon and <keyword id="6354742" type="General" weightage="50" keywordseo="flipkart" source="Orion">Flipkart</keyword>, said CAIT Secretary General Praveen Khandelwal, while commenting upon the action of the CCI. Since past three years, the CAIT has been raising strong objections against alleged mal-practices of Amazon and Flipkart and filed complaints with CCI beside strongly fighting delaying tactics of Amazon and Flipkart in various courts as well. Khandelwal, in a statement said that role of Narayan Murthy should also be investigated while conducting raid. The situation demands that all the records in paper and computers of both the sellers pertaining to the complaints of should be confiscated so that these can not be tempered. "The seizure of records will amply substantiate the charges made by CAIT against Amazon and <keyword id="6094771" type="General" weightage="50" keywordseo="appario" source="Orion">Appario</keyword>. Beside, these two sellers, other top 20 sellers of Amazon in last five years, should also be properly scanned since Amazon is flouting all laws and FDI policy of the Government and trying to creating a monopolistic market in India since a long time and there is no transparency on Amazon e-commerce portal thereby causing huge damage to small retailers of the country and collateral damage to the consumers," said the statement. The trade body further said that predatory pricing, deep discounting, loss funding, exclusive sale of branded products in collusion with respective corporate companies, owing inventory are some of the fundamental issues raised by the CAIT."All these practices are explicitly prohibited under Press Note 2 of FDI policy of 2018," the statement added. Biggest hit verticals due to mal-practice of Amazon and Flipkart include Mobile, FMCG, Consumer Durables, clothing, Readymade Garments, Beauty care products, Watches, Gift items, and furnishing fabric, it said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/ola-may-be-rushing-into-electric-cars-when-scooters-continue-to-underperform/articleshow/91141264.cms"></a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/google-will-now-allow-users-to-remove-personal-information-from-their-search-results/articleshow/91142502.cms">Google will now allow users to remove personal information from their Search results</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/adani-enterprises-sets-up-a-wholly-owned-media-arm/articleshow/91128727.cms"></a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/space/news/skywatching-on-april-30-venus-and-jupiter-will-look-like-they-are-about-to-collide/articleshow/91145254.cms">Skywatching on April 30: Venus and Jupiter will look like they are about to collide</a>

CAIT lauds CCI's raid on Amazon sellers Cloudtail, Appario

<ul><li>CCI has reportedly raided top domestic sellers on <keyword id="18635" type="General" weightage="20" keywordseo="amazon" source="Orion">Amazon</keyword> and Walmart-owned <keyword id="6354742" type="General" weightage="20" keywordseo="flipkart" source="Orion">Flipkart</keyword> on Thursday morning.</li><li>The raids were in line with the accusation of competition law violations, according to media reports.</li><li>The raids were carried out in New Delhi and Bengaluru.</li></ul>The Competition Commission of India (CCI) has reportedly raided top domestic sellers on Amazon and Walmart-owned Flipkart on Thursday morning. The raids were in line with the accusation of competition law violations, a report by Reuters citing multiple sources revealed. The report noted that offices of both <keyword id="2682122" type="General" weightage="20" keywordseo="cloudtail" source="Orion">Cloudtail</keyword> and <keyword id="6094771" type="General" weightage="20" keywordseo="appario" source="Orion">Appario</keyword> — the top sellers on Amazon where the US-based ecommerce giant also holds indirect equity stake — were raided. The details of Flipkart sellers haven’t been released yet. One of the sources also told Reuters that the raids were carried out in New Delhi and Bengaluru. The raids were in relation to an investigation antitrust watchdog CCI ordered in January 2020. Business Insider has reached out to Amazon and Flipkart seeking more details. Indian retailers and associations have time and again accused ecommerce giants — Amazon and Flipkart — of favouring certain large sellers over others. The Indian foreign direct investment (FDI) guidelines prohibit foreign-funded companies from giving preferential treatment to any sellers or selling their own products on these platforms. The sellers, including the Confederation of All India traders (CAIT), has also accused Amazon and Flipkart of carrying out deep discounting, predatory pricing and other practices that create an unlevel playing field for the small sellers. The organisation has also reached out to multiple agencies and government departments highlighting the issue. SEE ALSO <a href="https://www.businessinsider.in/business/startups/news/ola-may-be-rushing-into-electric-cars-when-scooters-continue-to-underperform/articleshow/91141264.cms">Is Ola hurrying into its electric car dream?</a> <a class="tout-title-link" href="https://www.businessinsider.in/thelife/personalities/news/the-rise-and-fall-of-zuck-from-the-third-richest-person-in-the-world-to-eighteenth-zuckerbergs-fall-reflects-that-of-facebooks/articleshow/91147088.cms">The rise and fall of Zuck: From the third richest person in the world to 18th, Zuckerberg’s fall reflects that of Facebook’s</a> <a href="https://www.businessinsider.in/business/corporates/news/lic-ipo-policyholders-and-employees-need-to-know-these-terms-and-conditions-to-apply-for-ipo/articleshow/91142300.cms" data-type="tilCustomLink">LIC IPO: If you are a policyholder, this is how much discount you get</a>

Indian antitrust watchdog reportedly raids Amazon, Flipkart’s biggest sellers

<ul><li><keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword> and its top Indian <keyword id="11827681" type="UNKNOWN" weightage="20" keywordseo="seller-cloudtail">seller Cloudtail</keyword> will reportedly not renew their contract ending on May 19, 2022.</li><li>This comes amid allegations from retailers at Amazon of <keyword id="2682122" type="PERSON" weightage="20" keywordseo="Cloudtail">Cloudtail</keyword> India receiving preferential treatment from the e-commerce giant.</li><li>In February, an investigation by a media report on Amazon said that it gave preferential treatment to a small group of sellers including Cloudtail and used them to bypass Indian laws.</li></ul>US-based e-commerce titan Amazon and one of its biggest sellers in India, Cloudtail India, are <a href="https://economictimes.indiatimes.com/tech/technology/et-exclusive-amazons-cloudtail-india-to-stop-operations-from-next-may/articleshow/85179750.cms">reportedly </a>going to end ties and not renew their contract after May 19, 2022 after seven years of partnership. Cloudtail India came into existence when Amazon and Indian billionaire and cofounder of Infosys, N.R. Narayana Murthy, formed a joint venture called Prione Business Services in August 2014. This comes when Amazon has been under <a href="https://www.businessinsider.in/business/ecommerce/news/amazon-and-flipkart-may-have-a-new-headache-as-indias-e-commerce-policy-could-also-question-their-algorithms/articleshow/81512786.cms">speculation </a>for giving preferential treatment towards sellers that it had a stake in – Cloudtail and Appario. However, the company had in the past lashed out, calling the report “unsubstantiated, incomplete, factually incorrect”. The Competition Commission of India (CCI) had also ordered investigation into Amazon and Walmart-owned Flipkart last year for allegedly promoting select sellers (those in which they own a stake) on their e-commerce platforms and using business practices that stifle competition. Cloudtail has a strong presence in the Amazon India marketplace in categories like smartphones, electronics and fashion. India’s laws in foreign direct investment (FDI) in retail restrict companies like Amazon to sell items directly to consumers and hence allegedly to bypass these laws they operate through joint ventures with local companies. Business Insider has reached out to Amazon India for comments. We will be updating the story if and when we receive a response. A Reuters investigation in <a href="https://www.ndtv.com/business/amazon-to-end-joint-venture-with-narayana-murthys-catamaran-2506532">February </a>had said that Amazon publicly called Cloudtail an independent seller offering goods on its marketplace website, but internal company documents revealed the US company was deeply involved in expanding it and used it, among other sellers, to circumvent the country's foreign investment laws. The media report showed that Amazon also gave Cloudtail, and another seller named Appario, discounted fees. Reportedly, Amazon is also in talks with the parent of Appario to determine whether it wants to renew its joint venture next year. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/investment/news/indian-crypto-exchange-coindcx-has-joined-the-crypto-unicorn-club-after-new-funding/articleshow/85200985.cms">CoinDCX becomes India’s first crypto unicorn as it joins the leagues of Binance, Robinhood, Ripple, and others</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/tata-group-to-offer-satellite-broadband-services-in-india-through-telesats-lightspeed-brand/articleshow/85200846.cms">Tata group to offer satellite broadband services in India through Telesat’s Lightspeed brand</a>

Amazon and its top seller Cloudtail to end ties amid allegations of giving preferential treatment

<ul><li>Recent leaks from the draft e-commerce policy spell more trouble for the likes of <keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword> and <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>.</li><li>E-commerce firms in India will have to ensure that all sellers on the platform are treated equally and should not use algorithms to give partial treatment to any seller.</li><li>Recently, Amazon’s businesses had come under speculation for preferential treatment towards sellers that it had a stake in – Cloudtail and Appario.</li></ul>The Indian government is in the final stages of formulating its draft e-commerce policy and recent leaks from the draft spell more trouble for the likes of Amazon and Flipkart. A Reuters report said that the draft <a href="https://www.reuters.com/article/india-ecommerce-policy-idUSKBN2B50DJ">e-commerce policy</a> would ensure that e-retail platforms in India will have to ensure that all sellers on the platform are treated equally and should not use algorithms to give partial treatment to any seller. “E-commerce operators must ensure equal treatment of all sellers/vendors registered on their platforms and not adopt algorithms which result in prioritising select vendors/sellers,” says the new policy as per Reuters. In the initial draft released by the government in November 2019, FDI in e-commerce will only be allowed for the marketplace model and not for inventory-based selling. This means that Flipkart and Amazon, will not be allowed to own or sell through any of their entities. However, there is now conjecture on how these entities or parties could be defined. According to an <a href="https://economictimes.indiatimes.com/tech/tech-bytes/indias-new-draft-e-commerce-policy-to-rein-in-related-parties/articleshow/81502310.cms">ET report</a>, the government at its will could notify and change the definition of these parties. Recently, Amazon’s <a href="https://www.reuters.com/investigates/special-report/amazon-india-operation/">businesses</a> had come under speculation for preferential treatment towards sellers that it had a stake in – Cloudtail and Appario. However, the company had lashed out, calling the report “unsubstantiated, incomplete, factually incorrect”. <cmsannotation type="cmsannotation" annotationid="India’s e-commerce policy – a long time coming" comment="subhead" text="India’s e-commerce policy – a long time coming">India’s e-commerce policy – a long time coming</cmsannotation> The government has put together a group of secretaries to work on the e-commerce policy, who had then sent it to several departments within the government for their views. According to reports, the Department for Promotion of Industry and Internal Trade is also holding consultations with various departments from March 17-19, 2021 to finalize the policy. A draft of the National e-commerce policy was introduced in February, 2019 and in November 2019, yet another draft on consumer protection in e-commerce also came in. The policy has already gone through multiple rounds of deliberations. While homegrown players like Snapdeal, Paytm Mall have, more or less, found this to be a palatable draft, foreign and foreign-funded players like Amazon and Flipkart find it tough to digest. <cmsannotation type="cmsannotation" annotationid="What the Indian e-commerce policy could include" comment="subhead" text="What the Indian e-commerce policy could include">What the Indian e-commerce policy could include</cmsannotation> General rules laid out in the draft released on November, 2019 <ul><li>It shall be a registered legal entity under the laws of India;</li><li>It shall submit a self-declaration to this Department stating that it is in compliance with these guidelines;</li><li>The promoter or key management personnel should not have been convicted of any criminal offence punishable with imprisonment in last 5 years by any Court of competent jurisdiction;</li><li>It shall comply with the provisions of Information Technology (Intermediaries guidelines) Rules, 2011.</li><li>Payments for sale may be facilitated by the e-commerce entity in conformity with the guidelines of the Reserve Bank of India.</li></ul>One of the major problems in the e-commerce sector, deep discounting or predatory pricing will be looked into as well. Anti-counterfeiting measures will be taken to curb the growing menace of fake products. Another important point of the policy is the government's insistence that all local data should be stored in India. The policy also states that e-commerce players cannot directly or indirectly influence the price of the goods or services and must maintain a level playing field. They also cannot falsely represent themselves as consumers or post reviews on their behalf. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/stripe-the-most-valued-startup-in-the-us-to-offer-payment-services-to-indias-merchants-after-its-latest-fundraise/articleshow/81504106.cms">Stripe, the most valued startup in the US, to offer payment services to India’s merchants after its latest fundraise</a> <a href="https://www.businessinsider.in/stock-market/news/the-us-dollar-is-expected-to-get-stronger-thats-good-news-for-indian-it-services-but-not-for-many-others/articleshow/81511223.cms">The US dollar is expected to get stronger⁠ — that's good news for Indian IT services but not for many others</a>

Amazon and Flipkart may have a new headache as India’s e-commerce policy could also question their algorithms

<ul><li>Amazon India is converting its biggest sellers into wholesale companies in to order to be compliant with India’s new e-commerce rules. </li><li>Cloudtail and Appario — two of Amazon’s largest vendors —- will sell to a battery of third-party ‘preferred’ vendors according to reports. </li><li>Some of the items that are sold by Cloudtail and Appario are currently unavailable on Amazon India as the company changes its affiliates’ business models.</li></ul>Some items might be unavailable on Amazon India right now but that will soon change as Amazon India is reportedly turning two of its largest vendors — Cloudtail and Appario — into wholesale companies. In order to be compliant with India’s new e-commerce rules — that bars e-commerce companies from selling products supplied by affiliate companies on their shopping sites — Amazon is going to start selling via vendors instead of selling directly to customers <a href="https://tech.economictimes.indiatimes.com/news/internet/amazon-plans-wholesale-makeover-to-become-ecommerce-fdi-compliant/67826264">according</a> to a report by ETtech. Retail to wholesale The e-commerce policy only dictates that e-commerce giants like Amazon India can’t sell products to customers if it the vendor supplying the product is a company in which Amazon has stake. While Cloudtail is a 49-51 joint venture between Amazon and Catamaran India, Appario is a 49-51 joint venture between the online e-commerce giant and the Patni Group. If Cloudtail and Appario were to become wholesale vendors instead, then they would only be supplying their products to third-party ‘prefered’ vendors through Amazon Business in India — Amazon’s Indian B2B marketplace. These third-party ‘preferred’ vendors would then sell those products on the Amazon India portal. Every wholesale vendor has the right to pick its preferred retailer for the products they are selling. Sources told ETtech that Amazon hasn’t completely set aside the idea to sell off its stake to order to comply with the new guidelines, but the wholesale route is a faster process, it will comply with the new forms and Amazon still continues to enjoy the value from the both the companies. The good news for consumers is that items supplied by Amazon will still be available on the site. Category managers at Amazon india are currently figuring out which vendors are ‘preferred’ sellers for each of the brand’s categories. The Amazon Echo smart speakers are still on sale, even though Appario is no longer the supplier. Other brands should be live in the marketplace soon once the business model has been realigned. The new guidelines were issues on December 26 after which, both e-commerce giants — Walmart and Amazon — teamed up to seek an extension of the February 1 deadline but with no success. Local e-commerce players are looking forward to the much anticipated relief from competing against deep discounts and traditional retailers are hoping to regain some market share. See also: <a href="https://www.businessinsider.in/the-indian-government-just-dealt-a-serious-surprise-to-amazon-and-flipkart-heres-what-that-means-for-online-shoppers/articleshow/67272151.cms">The Indian government just dealt a serious surprise to Amazon and Flipkart — Here’s what that means for online shoppers</a> <a href="https://www.businessinsider.in/amazon-walmart-owned-flipkart-set-back-by-new-e-commerce-rules-that-help-mukesh-ambanis-reliance-retail/articleshow/67751026.cms">Mukesh Ambani may be the surprise winner from India's new rules hurting Amazon and Walmart</a> <a href="https://www.businessinsider.in/indias-new-e-commerce-policy-has-rivals-flipkart-and-amazon-teaming-up-to-counter-the-new-directive-and-the-republic-day-sale-will-probably-be-their-last/articleshow/67366996.cms">India’s new e-commerce policy has rivals Flipkart and Amazon teaming up to counter the new directive — and the ‘Republic Day’ sale will probably be their last</a>

Amazon may have found a way around India’s new e-commerce rules

<ul><li><keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword>, <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> have filed their respective pleas and the matter is likely to be heard this week.</li><li>Lobby groups and Indian traders have accused the e-commerce giants of business malpractices and policy violations.</li><li>A report published earlier this year had highlighted that only two sellers made about one-third sales on Amazon.</li></ul>Walmart-owned homegrown e-commerce giant Flipkart and rival Amazon have separately challenged Competition Commission of India’s (CCI) decision to launch an antitrust investigation into their business practices. Notably, the companies have denied any wrong doings in their respective appeals. The antitrust investigation would look into the alleged policy violations and anti-competitive behaviours by both Amazon and Flipkart. Flipkart filed its appeal on June 16 in the Karnataka High Court. Details of Amazon’s appeal are not out yet. The development was first <a href="https://www.reuters.com/world/india/walmarts-flipkart-challenges-india-court-order-antitrust-probe-sources-2021-06-17/?utm_source=Twitter&amp;utm_medium=Social">reported</a> by Reuters citing sources it did not name. The publication has further revealed that both the matters will be heard by a two-judge panel this week. "Irreparable injury will be caused to the appellant if the investigation was to continue pending the present appeal," Flipkart reportedly said in its appeal and urged the court to quash the initial CCI order for the investigation. Amazon, too, mounted similar challenges. Meanwhile, sources aware of the development told the publication that CCI planned to speed up the investigation on big tech players this week. The competition watchdog also plans, as per the report, to demand information from Flipkart and Amazon, based on the accusations raised on their business models. Several lobby groups like the Confederation of all India Traders (CAIT), All India Online Vendors Association (AIOVA) have accused these e-commerce giants of eating into their business with predatory policies, deep discounting and business malpractices. The associations have also called them out for violating Foreign Direct Investment (FDI) policy, Foreign Exchange Management Act (FEMA) and devoiding the government of taxes. Another <a href="https://www.reuters.com/investigates/special-report/amazon-india-operation/">report </a>published in February 2021 had highlighted similar violations on the part of Amazon. The report noted that two sellers — Cloudtail and Appario — in which Amazon had indirect stakes made up around 35% of the platform’s revenue through sales in 2019. Overall, just 35 sellers on Amazon accounted for roughly two-thirds of all sales. This indicated a violation of Press Note 2 of FDI policies that bars e-commerce companies from giving preferential treatments to certain sellers. India’s federal financial crime-fighting agency Enforcement Directorate (ED) was also considering taking a look into these allegations after the Reuters’ report was published in February. In January 2021, ED along with the Reserve Bank of India (RBI) and ED were directed by the Department of Promotions of Industry and Internal Trade (DPIIT) to take “necessary actions” against Amazon and Flipkart for flouting FDI and FEMA rules. The DPIIT’s direction of January 2021 was an aftermath of the protest and issues highlighted by CAIT. The association has also written to Piyush Goyal, the union minister of industry and commerce, seeking stricter actions against Amazon and Flipkart, “which are hell bent in monopolising e-commerce and retail trade with their unethical business practices”. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/browserstack-has-become-the-most-valued-vc-backed-saas-company-to-enter-the-indian-unicorn-club/articleshow/83599403.cms">BrowserStack’s unicorn status further strengthens India’s SaaS club</a> <a href="https://www.businessinsider.in/education/news/cbse-evaluation-criteria-for-class-12-results-announced-results-to-be-declared-on-june-31/articleshow/83598782.cms">CBSE announces 30:30:40 formula as the evaluation criteria for class 12, results to be declared on July 31</a> <a href="https://www.businessinsider.in/tech/apps/news/battlegrounds-mobile-india-download-link-early-access-registration/articleshow/83597180.cms">Battlegrounds Mobile India beta now available, early access rolling out – download and registration links here</a>

As Flipkart and Amazon try to quash India's antitrust investigation, trader lobbies accuse them of 'monopolising e-commerce'

<ul><li>A Reuters report revealed details about how the online retail giant tried to dodge India’s e-commerce regulations.</li><li>The company owned by <keyword id="191583" type="PERSON" weightage="20" keywordseo="Jeff-Bezos">Jeff Bezos</keyword>, the world’s richest man, has hit back at the report “unsubstantiated, incomplete, factually incorrect”.</li><li>But the Indian trade minister has said that “there are certain complaints under investigation.”</li><li>Meanwhile, the Confederation Of All India Traders (CAIT), a lobby for small wholesalers and retailers, has called for a ban on Amazon.</li></ul>E-commerce giant Amazon has hit back at a <a href="https://www.reuters.com/investigates/special-report/amazon-india-operation/">Reuters </a>report that said that the company owned by Jeff Bezos, the world’s richest man, used several strategies to dodge India’s e-commerce regulations. The company has now lashed out calling the report “unsubstantiated, incomplete, factually incorrect”. <div type="twitter" handle="AmazonNews_IN" handlename="Amazon India News" image="http://pbs.twimg.com/profile_images/1250691196994740224/ujrX8N87_normal.jpg" favoritecount="183" retweetcount="141" status="The story is unsubstantiated, incomplete, factually incorrect. Amazon remains compliant with Indian laws. We haven'… https://t.co/2r00z9PecY" createdat="1613581739000" id="1362086655755051008"></div> However, the matter has already escalated. India’s commerce minister Piyush Goyal has <a href="https://www.business-standard.com/article/economy-policy/goyal-warns-e-commerce-cos-against-flouting-norms-rules-out-policy-change-121020901704_1.html">reportedly said</a> that, “there are certain complaints from consumers and small retailers about certain practices of e-commerce companies which are under investigation. We have sought several information. They are being looked into,” he said <a href="https://www.business-standard.com/article/economy-policy/goyal-warns-e-commerce-cos-against-flouting-norms-rules-out-policy-change-121020901704_1.html">recently.</a> Goyal, who is known to have rapped the foreign <a href="https://economictimes.indiatimes.com/news/economy/policy/probing-predatory-pricing-by-flipkart-amazon-piyush-goyal/articleshow/71638881.cms?from=mdr">e-commerce players</a> in previous industry meetings, also asserted that “India’s e-commerce policy is robust and well designed and will not be changed.” <div type="Article" hostid="261" msid="81087952" title="Cairn Energy CEO meets Indian finance secretary as shareholders impatiently wait for action on the $1.4 billion tax dispute" mstype="2" mssubtype="0"></div> At the same time, the Confederation Of All India Traders (CAIT), a lobby for small wholesalers and retailers, has called for a ban on Amazon. “It is a matter of shame on Amazon that it was least bothered and kept indulging itself into continuing its sinister designs to manipulate and control not only e- commerce but even the retail trade,” CAIT said in a statement. The last thing that Bezos wanted Online marketplaces Amazon and Walmart-owned Flipkart have been complaining about the recent changes in India’s e-commerce policy. <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Recent changes </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Impact </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Consumer Protection (E-commerce) Rules 2020 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Labelling should mention expiry date of products and country of origin, along with the price. The platforms will also be liable for mis-selling and false advertising. The platforms will not be able to impose cancellation charges or to “manipulate the prices” by classifying or discriminating the customer. </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Equalisation levy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Foreign e-commerce companies will pay additional 2% for revenue generated from Indian customers. </td></tr></tbody></table> For almost two years now, the Modi government has been working on an e-commerce policy. The draft has already been shared with the e-commerce players in India. The policy will aim to regulate the booming e-commerce sector and also keep an eye on the role of foreign players. The government is also under pressure from the offline traders⁠— who count among the traditional vote bank for the ruling Bharatiya Janata Party (BJP) government⁠— who claim that the online retail giants are driving them out of business. The Reuters report seems to back up some of these charges against Amazon. The report said that Amazon had preferential treatment towards sellers that it had a stake in – Cloudtail and Appario. “Two more sellers on the e-commerce giant’s India platform – merchants in which Amazon had indirect equity stakes – accounted for around 35% of the platform’s sales revenue in early 2019,” said the report. Bezos, who promised to invest an extra $1 billion in India — taking the total committed investment in the country to $6.5 billion — on his last visit to New Delhi in 2020, has not seen the Narendra Modi administration soften its stance on foreign e-commerce players. The latest charge will further reduce the negotiating chips on the table for Amazon, which counts India among <a href="https://www.bbc.com/news/business-51117515">its biggest growth markets</a>. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/not-just-a-tiktok-clone-says-chingari-app-founder-with-their-latest-shop-within-videos-feature-which-he-claims-is-the-next-big-thing-in-social-commerce/articleshow/81084432.cms">‘Not just a TikTok clone,’ says Chingari founder with their latest shop within videos feature which he claims is the next big thing in social commerce</a> <a href="https://www.businessinsider.in/india/news/checkout-viral-memes-and-jokes-on-social-media-around-petrol-price-in-india/articleshow/81085815.cms">The painful surge in fuel prices in India has led to some hilarious memes and videos on Twitter and Instagram</a>

Amazon denies dodging Indian regulations⁠ but the government is already investigating and rivals want a ban on Jeff Bezos’ company

<ul><li>The Karnataka High court decided an interim stay on the anti-trust investigations against Amazon and <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>. </li><li>E-commerce giant Amazon filed a petition at the HC on Monday requesting a stay, to save the company’s reputation. </li></ul>The Karnataka High court today gave an interim stay order on the anti-trust investigation against two of India’s biggest e-commerce players, Amazon and Flipkart, by the <keyword id="97393" type="COMPANY" weightage="20" keywordseo="Competition-Commission-of-India">Competition Commission of India</keyword> (CCI). The Confederation of All India Traders (CAIT) has voiced their dissent against the two players accusing them of using their dominant position in the market to undercut the value of brand by deep discounting products on their platforms. In 2019, the Indian government issued a draft National E-commerce policy that restricted the use of these practices. Despite several warnings from the Commerce Minister Piyush Goyal, local retailers have accused the e-commerce of giants continuing to offer deep discounts and discriminating against small sellers. The two-month deadline In January 2020, the CCI ordered an investigation of alleged malpractices — such as deep discounting, listing selected sellers and exclusive partnerships with brands — by Amazon and Flipkart. CAIT is demanding a ban on these ‘sales’ altogether on behalf of the over 70 million local traders it represents. The bench has ordered two months interim stay. In that time, the counsels for CCI, Confederation of All India Traders (CAIT) and Delhi Vyapar Mahasangh — as well as Amazon and Flipkart — have been asked to file replies with the court. “We have been maintaining in the court that the CCI order that called for an investigation into our the businesses of the e-tailers wasn’t correct since none of the e-commerce companies were asked to clarify their positions,” a member of Amazon’s briefing counsel team told the <a href="https://www.newindianexpress.com/business/2020/feb/14/big-relief-for-amazon-flipkart-as-karnataka-high-court-orders-interim-stay-on-cci-probe-2103357.html">New Indian Express</a> . The online retailer filed a writ petition on Monday in the Karnataka HC seeking a stay on the investigation. In an affidavit, Amazon said that the CCI order was passed “without application of mind” and would cause irreparable damage to the company reputation if an investigation is continued further. The e-commerce policy would also restrict the companies from selling their own goods. However, according to data shared by <keyword id="6354743" type="LOCATION" weightage="20" keywordseo="Amazon-India">Amazon India</keyword>, one-third of all sales are being coordinated by Appario and Cloudtail, which are Amazon’s subsidiaries. The rest of its total gross merchandise value is divided between the other 550,000 smaller sellers on the platform. Anti-trust investigations are harassment Counsel for Flipkart and Amazon also said that the industry body has been filing petitions across the country amounting to harassment. When Amazon CEO Jeff Bezos visited India last month, he was greeted by a throng of protestors accusing him of killing competition for brick-and-mortar stores in the country. <div type="twitter" handle="vijai63" handlename="Dr Vijay Chauthaiwale" image="http://pbs.twimg.com/profile_images/1210750316225810432/WmCHGxxh_normal.jpg" favoritecount="1711" retweetcount="609" status="Mr @JeffBezos , please tell this to your employees in Washington DC. Otherwise your charm offensive is likely to be… https://t.co/YyZpUY7PBB" createdat="1579171599000" id="1217760066473877504"></div>

 India’s commerce minister, Piyush Goyal, also accused Amazon of predatory pricing. “It is not as if they are doing a favour to India when they invest a billion dollars,” he said accusing the e-commerce giant of taking business away from Indian companies. For now, Amazon and Flipkart have two months to disprove the accusations. It’s uncertain which way the case will unfold, but the ultimate result could set the precedent for anti-trust investigations against global companies in India. Meanwhile, the e-commerce policy is set to come into the picture by April or May 2020.

Amazon, Flipkart get 2-month relief from Karnataka High Court over a CCI investigation

<ul><li>Skechers buys 49% stake in Indian retail joint venture with Future Group.</li><li>Amazon had reportedly signed a term sheet last year for a proposed stake purchase in Kishore Biyani's venture.</li><li>Amazon and Future Group had put talks on hold as new e-commerce rules kicked in February 2019.</li></ul> Amazon was reportedly in talks to buy stake in one of India's leading retail chains, the Future Group. Tripped by the new e-commerce rules brought in by the Indian government, the two companies put those negotiations on hold. However, within a couple of weeks, Future Group's Kishore Biyani has found another keen buyer, the American footwear brand, Skechers. Biyani <a href="https://economictimes.indiatimes.com/industry/services/retail/skechers-buys-future-groups-49-in-joint-venture-for-independent-run/articleshow/67968514.cms" data-type="tilCustomLink" target="_blank">reportedly</a> sold his 49% stake in the existing joint venture to Skechers for a sum of ₹5.8 billion. Skechers now <a href="https://entrackr.com/2019/02/skechers-exit-future-group/?utm_campaign=fullarticle&amp;utm_medium=referral&amp;utm_source=inshorts" data-type="tilCustomLink" target="_blank">plans</a> to open 80-100 more stores, of which the company will directly own 20 stores. Amazon had <a href="https://entrackr.com/2018/11/amazon-acquire-9-5-stake-future-retail/" target="_blank">signed a term sheet </a> to buy anywhere between 10% and 15% stake in Future Group for up to $700 million in August 2018. In September last year, Amazon along with PE firm Samara Capital signed a deal to acquire food and grocery retail chain More. Less than a year before that, the Jeff Bezos-led firm had bought 5% stake in Shoppers Stop for $26.35 million. Physical retailers are the immediate benefactors India's new e-commerce rules. The new norms are expected to boost sales for brick-and-mortar stores by taking away the discounts available to consumers online. CRISIL has estimated that it could increase revenue for offline retailers by ₹100 billion to ₹120 billion by 2020. The promise of India's retail market is no secret to other companies either. “Few markets match the potential for growth like India does, which is why we entered the market initially, and recently decided to buy the minority stake in our joint venture,” said David Weinberg, chief operating officer of Skechers. For Amazon, the challenges in India are only rising. The company had to add new sellers and delist about 500,000 products from its sellers <keyword id="2682122" type="PERSON" weightage="20" keywordseo="Cloudtail">Cloudtail</keyword>, Appario and Shoppers Stop as the govt prohibited online marketplaces from selling products through companies in which they own stakes. As Amazon went back to the drawing board, Skechers swept away the deal. SEE ALSO: <ul class="breadcrumb clearfix"><li class="youhere"><a>Mukesh Ambani May Be The Surprise Winner From India's New Rules Hurting Amazon And Walmart</a></li></ul>

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CAIT lauds CCI's raid on Amazon sellers Cloudtail, Appario

IANS

Indian antitrust watchdog reportedly raids Amazon, Flipkart’s biggest sellers

Kritti Bhalla

Amazon and its top seller Cloudtail to end ties amid allegations of giving preferential treatment

Bhakti Makwana

Amazon and Flipkart may have a new headache as India’s e-commerce policy could also question their algorithms

Sanchita Dash

Amazon may have found a way around India’s new e-commerce rules

Prabhjote Gill

As Flipkart and Amazon try to quash India's antitrust investigation, trader lobbies accuse them of 'monopolising e-commerce'

Kritti Bhalla

Amazon denies dodging Indian regulations⁠ but the government is already investigating and rivals want a ban on Jeff Bezos’ company

Sanchita Dash

Amazon, Flipkart get 2-month relief from Karnataka High Court over a CCI investigation

Navdeep Yadav

A US footwear brand has bagged a deal in India that Amazon wanted

Sriram Iyer