CCI Set to Fine Amazon for Alleged Anti-Competitive Practices: Report

What is the story?

The Competition Commission of India (CCI) is preparing to fine Amazon for alleged anti-competitive behaviour, according to a report Mint report.

According to sources, the investigating body of the competition watchdog has confirmed the allegations against Amazon Seller Services Pvt Ltd and a relevant notification is expected to be issued soon.

These events constitute the basis for the final ruling in this case.

CCI to share investigation results with Amazon

The CCI, which recently received a report against Amazon, intends to share its findings with the company.

A hearing will then be held before a final order is issued.

The Commission is currently in the process of sending its findings to Amazon and will give the company the opportunity to present its case at a hearing before issuing a final ruling and imposing a penalty.

Amazon could face significant fine under new rules

Under the new regulations, CCI has the right to impose fines of up to 10% of a company’s global turnover.

“The fine will be set based on the amended competition law, which provides for a maximum fine of 10% of the company’s global turnover,” said a person familiar with the matter. Mint.

This potential fine could have significant financial consequences for Amazon if enforced by the Commission.

Increased scrutiny of e-commerce giants in India

The American e-commerce giant has come under increased scrutiny in India.

Last month, Commerce Minister Piyush Goyal questioned whether the rapid growth of e-commerce companies in the country was a “cause for concern” or something to be proud of.

He also expressed concern over predatory pricing by these companies and its impact on the Indian economy.

Accusations of anti-competitive behavior against Amazon and Flipkart

The cases against Amazon and Flipkart were initiated based on a complaint filed by a Delhi-based trade association.

The issues being probed by the CCI include whether e-commerce giants have preferred sellers; whether these sellers have direct or indirect tie-ups with platforms; and whether exclusive launches of mobile phones, alleged preferential treatment of a few sellers and discounting practices have affected competition in the market.

Legal experts call for cautious use of high-penalty laws

Legal experts emphasize that the possibility of imposing high fines should be used carefully and only when the gravity of the violation justifies it.

Sonam Chandwani, managing partner of law firm KS Legal & Associates, said the imposition of a fine of up to 10% of a company’s global turnover marks a significant shift in competition law enforcement in India.

However, she stressed that such a high penalty should be applied carefully and reserved for obvious, flagrant violations.