Amazon’s Delisted Seller Sues Competition Commission Of India

Former Amazon seller Appario has reportedly moved the Karnataka High Court (HC) to seek the quashing of an antitrust probe against the ecommerce major. 

As per court filings accessed by Reuters, Amazon’s now-delisted seller on Thursday (September 26) filed a lawsuit against the Competition Commission of India (CCI). In its petition, the former top seller has urged the HC to set aside the internal antitrust report that details how Amazon India reportedly flouted competition laws by prioritising certain sellers and listings. 

Appario is named in the antitrust report by the competition watchdog, added the report. There was no further clarity on the grounds for the suit. 

The lawsuit effectively marks the first legal challenge to the four-year-long antitrust investigation into both Amazon India and Walmart-backed Flipkart. It is pertinent to note that the antitrust report is yet to be made public.

The legal case comes days after reports surfaced that CCI reportedly sought turnover details from both ecommerce giants to determine the penalty for flouting antitrust norms. Flipkart and Amazon are facing a penalty of up to 10% of their global annual turnover or income, the report added.

It is pertinent to note that Appario was one of the biggest sellers on Amazon India. The company was a joint venture (JV) between Amazon and Patni Group-owned Zodiac Wealth Management. 

In July this year, CCI approved the sale of Appario Retail to Clicktech, another seller on the platform.

Notably, while Amazon has denied all antitrust allegations, a media report had found that Appario was internally, within Amazon India, referred to as a “special” merchant and received discounted fees and access to Amazon global retail tools. 

In 2022, the watchdog even raided Appario and some other sellers as part of its larger investigations into Amazon.