Amazon’s Delisted Seller Sues Competition Commission Of India

Amazon’s Delisted Seller Sues Competition Commission Of India

SUMMARY

In its petition, Appario has urged the HC to set aside the internal antitrust report that details how Amazon India reportedly flouted competition laws by prioritising certain sellers

Appario is said to be named by the competition watchdog in the antitrust report

In 2020, a media report found that Appario was internally referred to as a "special" merchant and received discounted fees on Amazon 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.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Amazon’s Delisted Seller Sues Competition Commission Of India-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Amazon’s Delisted Seller Sues Competition Commission Of India-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Amazon’s Delisted Seller Sues Competition Commission Of India-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Amazon’s Delisted Seller Sues Competition Commission Of India-Inc42 Media
Amazon’s Delisted Seller Sues Competition Commission Of India-Inc42 Media
You’re in Good company