Indian mobile retailers call for Amazon probe, cap on online smartphone sales

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An Indian commerce group representing 150,000 mobile telephone shops on Monday urged Prime Minister Narendra Modi to analyze Amazon’s enterprise practices within the nation and impose a each day cap on a single vendor’s online smartphone sales.

In a letter despatched to Modi, the group cited a Reuters particular report printed final month that exposed Amazon has for years given preferential therapy to a small group of sellers on its Indian platform, utilizing them to bypass the nation’s strict overseas funding rules.The report was primarily based on inside Amazon paperwork dated between 2012 and 2019.

“We were already aware of Amazon’s thought process and strategy,” the All India Mobile Retailers Association (AIMRA) wrote within the letter. The paperwork, the letter mentioned, “have revealed that Amazon is doing business in India with the strategy of deftly dodging the regulators and politicians”. AIMRA urged the federal government to “suspend all Amazon activities in India” till there may be an investigation into the corporate’s practices.

Amazon says it doesn’t give preferential therapy to any vendor on its market and has all the time complied with Indian regulation. Amazon and Modi’s workplace didn’t instantly reply to a request for remark on Monday. Indian retailers, an important a part of Modi’s assist base, have lengthy alleged that Amazon and Walmart’s Flipkart flout federal rules and that their enterprise practices damage small merchants. The corporations, which run the 2 largest e-commerce platforms in India, deny the allegations.

The Amazon paperwork reviewed by Reuters confirmed the corporate helped a small variety of sellers prosper on its web site, discounted their charges and helped one lower particular offers with massive tech producers resembling Apple Inc. Some 35 of Amazon’s greater than 400,000 sellers in India in early 2019 accounted for round two-thirds of its online sales, the paperwork additionally confirmed.

AIMRA mentioned in its letter the federal government ought to cap a single vendor’s each day smartphone sales on Amazon and Flipkart at 500,000 rupees ($6,829).The group additionally alleges the US companies promoted sales on their platforms via most well-liked sellers, asking the federal government to analyze tie-ups between smartphone manufacturers and these sellers.

Flipkart didn’t reply to a request for remark. In the particular report printed final month, Amazon mentioned in a press release that it was serving to small companies in India and that it “treats all sellers in a fair, transparent, and non-discriminatory manner”.

Brick-and-mortar retailers have mentioned they’re struggling to compete with the tech giants as online smartphone sales increase. By 2019, 44% of smartphones in India had been being bought online, with Amazon and Flipkart dominating the sales, in line with Forrester Research.

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