India’s Commerce Minister, Piyush Goyal, has accused Amazon and other e-commerce platforms of engaging in predatory pricing practices that undermine traditional brick-and-mortar retailers. Goyal criticized Amazon for allegedly using substantial investments to offset business losses, suggesting such strategies indicate predatory pricing intended to dominate the market.
Indian regulations prohibit e-commerce platforms like Amazon and Walmart-owned Flipkart from directly selling to consumers; they are required to operate as marketplaces for third-party sellers. However, there are allegations that these companies circumvent these rules through complex business structures, effectively controlling inventory and influencing prices.
This scrutiny adds to the challenges faced by Amazon and Flipkart in India, where they have invested billions to expand their presence. Both companies are currently under antitrust investigation by the Competition Commission of India (CCI) for allegedly favoring select sellers and engaging in anti-competitive practices.
In response to these allegations, both Amazon and Flipkart have previously stated that they operate in compliance with Indian laws and deny engaging in predatory pricing or any anti-competitive behavior.