SUMMARY
- Appario Retail filed a lawsuit to suppress an antitrust probe involving Amazon and its vendors.
- CCI investigation initiated due to accusations of Amazon and Flipkart favoring select vendors.
- Amazon denied claims, Appario seen as a “special” vendor with unique privileges.
Appario Retail, the former biggest seller on Amazon India, has filed a lawsuit against the Competition Commission of India (CCI) in Karnataka High Court.
Based on an antitrust regulator’s findings, the Bengaluru-based company has petitioned the court to suppress a probe into Amazon and its vendors. The selling company, which was acquired by Clicktech another well-known Amazon India seller in April, has pleaded to the court to have the report that named it removed, as reported by Reuters.
This progress coincides with rumors that the CCI has determined that Amazon and Flipkart are favoring certain Indian vendors and that the competition watchdog may fine these two online retailers. The Confederation of All India Traders (CAIT) affiliate Delhi Vyapar Mahasangh filed a petition with the CCI in October 2019 accusing Amazon and Flipkart of favoring certain vendors over others. This sparked the CCI’s investigation.
Although the e-commerce gaint has refuted any accusations of antitrust, Appario was regarded as a “special” merchant within Amazon India and was granted access to Amazon’s worldwide retail tools in addition to subsidized costs.
