US e-commerce behemoth Amazon could face a new regulatory challenge in India as a group representing over 2,000 vendors has filed a lawsuit claiming the retailer’s mistreatment may drive some sellers out of business.
In a claim filed to the Competition Commission of India (CCI) earlier this month, the All India Online Vendors Association accused Amazon of unfair business practices. In the legal filing, seen by Reuters, the group claims that Amazon India’s wholesale arm purchases massive volumes of goods directly from manufacturers and then sells them at a loss to companies it favors. Those firms then sell the products on Amazon marketplace in India at discounts of up to 45 percent.
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