India's antitrust body on Friday told a court that a Reuters report showing Amazon.com Inc gave preferential treatment to a small group of sellers on its India platform corroborated evidence it had received and which had triggered an investigation of the U.S. e-commerce giant.
The Competition Commission of India announced in January 2020 that it was investigating Amazon and Walmart Inc's Flipkart following a complaint from a trader group that they were promoting preferred sellers. But the probe into alleged violations of competition law was put on hold as the two firms mounted a court challenge.
The CCI's arguments in the case come after the watchdog this week submitted media clippings, including the Reuters story, as part of its exhibits to the court. Indian retailers, who are a crucial part of Prime Minister Narendra Modi's support base, have long alleged that Amazon's platform largely benefits a few big sellers and that the e-commerce company engages in predatory pricing that harms their businesses. The company says it complies with all Indian laws.Divan read to the court from the Reuters story for roughly 15 minutes.