The ED conducts operations against several sellers on Amazon and Flipkart in India in an offensive against money laundering.
Large e-commerce companies are being criticized for unfair business practices and for market domination in the form of a duopoly.
The Directorate of Enforcement has carried out operations at multiple suppliers linked to major e-commerce platforms, including Amazon and Flipkart. Reports indicate that on Thursday, investigations were conducted at least 15 to 16 locations as part of an inquiry related to the Foreign Exchange Management Act (FEMA). Officials had previously indicated that the antitrust investigation by the Competition Commission of India (CCI) had revealed violations by these online giants, particularly Amazon and Flipkart. Findings suggest that these companies were favoring certain listings and sellers, in addition to offering substantial discounts that benefited large brands like Apple and Samsung, adversely affecting local merchants.
On the other hand, it has been reported that the ED's offensive against certain sellers on Amazon and Flipkart is linked to financial transactions. Multiple searches have been conducted as part of this FEMA investigation, covering cities such as Gurugram (Haryana), Delhi, Bengaluru (Karnataka), and Hyderabad (Telangana). Since 2020, the CCI has been investigating Amazon and Flipkart, and recently accused both companies in separate reports of creating an unfair environment that favors preferred sellers, thus harming fair competition.