Amazon Seller Services Pvt Ltd is reportedly set to face a significant penalty from the Competition Commission of India (CCI) for alleged anti-competitive behaviour. According to a Mint report published on September 12, the CCI’s investigation arm has confirmed the charges against Amazon, with a formal notice expected to be issued in the coming days.
The charges stem from accusations that Amazon has engaged in practices harmful to market competition. A substantial fine could result. Under the new rules governing competition in India, the CCI is empowered to levy penalties of up to 10 per cent of a company’s global turnover. Given Amazon’s vast global operations, such a fine could amount to billions of dollars, marking a major setback for the company.
Following the notice, a hearing will occur before the CCI issues its final ruling. The report has yet to be independently verified, but it signals increasing regulatory pressure on Amazon’s business practices in India.
The company has already faced rising scrutiny from Indian officials, with Commerce Minister Piyush Goyal recently raising concerns about the country’s rapid expansion of e-commerce platforms. Piyush Goyal pointed to the significant financial losses reported by companies like Amazon and questioned whether their business models might be predatory. He highlighted the dissonance between the significant investments announced by Amazon and the potential harm such strategies may pose to local businesses and the Indian economy.
“When Amazon says it will invest a billion dollars in India, we celebrate. But we forget that this billion dollars might not be supporting the Indian economy,” Piyush Goyal remarked. He expressed concern that these firms might be using aggressive pricing strategies to dominate the market, a practice prohibited by Indian law.
CAIT (Confederation of All India Traders), in a statement on X, urged the Competition Commission of India to expedite the pending investigation case and take immediate & strong legal action against Amazon & Flipkart, who are continuously engaging in Anti-competitive practices by brazenly flouting all market norms.
Amazon has faced multiple legal challenges and investigations in India regarding its pricing practices and alleged favouritism toward certain sellers. If the CCI imposes a substantial penalty, it could be a turning point in how global e-commerce companies operate in India’s increasingly regulated market.
As the situation develops, the outcome of the CCI’s final decision could set a precedent for the entire e-commerce industry, with far-reaching implications for how companies like Amazon conduct business in the country.
