Sumary of Amazon fails to quash investigation into its Indian selling practices:
- The Indian competition commission is to relaunch an investigation into Amazon selling practices, which will examine the company £1bn a year joint venture with UK chancellor Rishi Sunak billionaire father-in-law..
- The investigation, originally announced in January 2020, will proceed after an Indian court on Friday dismissed pleas by Amazon and its rival – the Walmart-owned Flipkart – to quash its investigation into the business practices of the huge US retailers..
- Under India foreign direct investment law, overseas companies are banned from running an online retailer that holds inventory and then sells the goods directly to Indian consumers online..
- So instead, US websites such as Amazon.in are run as a “marketplace”, with Indian retailers selling their products via the site in return for paying the US company a fee..
- The issue is politically sensitive, as it has the potential of enraging millions of small internet retailers who form a chunk of Indian prime minister Narendra Modi political base….