On Wednesday, industry leaders criticized Amazon for manipulating search results in India to increase its product lines. India is one of the largest growth markets for the eCommerce giant.
A Reuters report that scanned thousands upon pages of Amazon.in documents revealed that Amazon India’s team “secretly exploited Amazon.in internal data to copy products and then offered them for sale on its platform” and “rigged Amazon search results so that their products would appear at the top.”
Praveen Khandelwal, Secretary General of Confederation of All India Traders (CAIT), stated that the Indian government should investigate this matter.
He tweeted, “@narendramodi Ji. It’s amazing that Govt agencies haven’t taken any cognisance of or asked #reuters for the papers.”
According to the report, Amazon’s anti market practices were affecting John Miller, a popular Indian shirt brand. This brand is currently owned by Kishore Biyani, founder of Future Group.
According to the report, Amazon decided to “follow the measurements” John Miller shirts to the neck circumference (and sleeve length) according to the document.
Biyani’s Future Group spokesperson was quoted in the report as saying that Amazon is “in a strong position to be both an online marketplace operator, and a seller/collector of data.” This leads to the misuse of seller and consumer data, giving Amazon the power to destroy Indian entrepreneurs and their brands.
Amazon stated in a statement, “Reuters has not shared the documents or their provenances with us, so we are unable confirm the veracity of the information and claims as stated.” These claims are unsubstantiated and factually incorrect, according to us.
After recent allegations of corruption against Amazon’s legal representatives and other associated firms, Amazon has been the center of controversy in India.
The Competition Commission of India (CCI), which is investigating the company for alleged anti-competitive activities, and an additional inquiry by Enforcement Directorate regarding violations of domestic laws are also being conducted.
Cloudtail, a subsidiary of the Directorate General of Goods and Service Tax Intelligence, was also given a show-cause notification by DGGI for evasion of indirect taxes and GST.
Amazon also challenged Future Group’s agreement with Reliance Retail to transfer its warehouse, retail, wholesale, logistics and logistics businesses to Reliance Retail Ventures.
CAIT claims that Amazon’s explanation on legal professional charges was a “blatant lie” to cover up its illegal business practices. It is inconsistent with regulatory filings made by Amazon and its group companies.
CAIT wrote to Piyush Goyal (Commerce and Industry Minister) stating that Amazon had spent Rs 5.262 crore on legal professionals.
Even if Amazon clarified that legal charges were only Rs 52 crore, Amazon should clarify immediately to who the rest was, i.e. It stated in the letter that Rs 5,210 crore was paid for professional charges.
Amazon is determined to discredit Prime Minister Narendra Modi’s tireless efforts in protecting small traders and safeguarding their interests. Amazon’s business practices instead have been ruining these traders and have created large-scale unemployment in this sector. “It is in the public interest to order an urgent, time-bound inquiry into Amazon India’s self -admitted charges by the CBI,” CAIT stated.
Amazon, the largest online retailer in the world, is reportedly investigating the conduct of its Indian legal representatives.
We have zero tolerance for corruption. We take all allegations of wrongdoing seriously and investigate them thoroughly before taking the appropriate actions. A company spokesperson stated that they were not commenting on the specific allegations or the statuses of any investigation at this point.
CAIT requested that Amazon India’s operations in all forms be stopped before it causes more damage or resorts any other financial irregularities. It is imperative that this strong example be set to deter Amazon and other companies from taking Indian law or government agencies for granted. Panchjanya, an RSS-oriented journal, attacked Jeff Bezos’s Amazon. It published a cover story calling it “the second generation of East India Company” that invaded India with business interests and ended up colonizing the country for 200 year.
After allegations of corruption surfaced, Amazon was accused of engaging in corrupt practices in the cover story featuring Bezos.