Indian Financial Crime Agency Expands Probe into E-Commerce Giants

India’s financial crime agency has intensified its investigation into Amazon and Flipkart, seeking sales data and operational details from Apple and Xiaomi. The move is part of a broader inquiry into potential violations of foreign investment regulations and competition laws by the two e-commerce giants.  

 

Officials have reportedly requested transaction records and pricing strategies from Apple and Xiaomi to assess whether Amazon and Flipkart have engaged in practices that unfairly influence market dynamics. The investigation follows recent raids on sellers associated with both platforms, with authorities scrutinizing their business relationships and pricing mechanisms.  

 

The Enforcement Directorate has been examining whether Amazon and Flipkart exert excessive control over inventory and pricing, potentially bypassing India’s foreign direct investment rules. These regulations prohibit foreign e-commerce firms from holding inventory directly, requiring them to operate as neutral marketplaces.  

 

Industry experts suggest that the inquiry could lead to stricter regulatory measures for e-commerce operations in India. The government has been increasingly focused on ensuring fair competition and preventing monopolistic practices in the rapidly growing digital retail sector.  

 

Latest developments:  

 

- Financial crime agency seeks sales data from Apple and Xiaomi in Amazon and Flipkart probe  

- Authorities investigate potential violations of foreign investment and competition laws  

- Recent raids targeted sellers linked to the e-commerce platforms  

- Scrutiny over inventory control and pricing influence by Amazon and Flipkart  

- Possible regulatory changes expected to impact India’s digital retail landscape  

 

Sources: Channel News Asia, The Asia Live, India Today