Indian authorities search e-commerce sellers in major multi-city operation

Indiaʼs financial-crime unit searched multiple e-commerce seller offices connected to Amazon and Walmart-owned Flipkart operations (the raids happened in New-Delhi Mumbai and Bengaluru)

The investigation targets foreign-exchange law violations and follows an anti-trust probe from last summer that found issues with seller preferences: these platforms dont provide equal opportunities to all merchants. About 19 different spots were checked by authorities who looked into how online marketplaces control product prices

• New-Delhi offices inspection
• Mumbai location searches
• Bengaluru area checks

The probe comes after a detailed study from bout 3 months ago which showed these e-commerce giants had complete control of inventory – something thats not allowed under Indian rules for foreign companies. A similar investigation from about 3 years ago showed Amazon had significant power over its big sellers inventory

The countrys commerce minister made strong comments about Amazon last summer; saying its India investments were used to cover business losses which points to predatory-pricing practices. Both Amazon and Flipkart say they follow all local rules but the Enforcement Directorate has been looking into their business model for quite some time

These new checks show increased oversight in Indias fast-growing online retail market – where both companies see major growth potential. The authorities are specifically checking how these platforms might indirectly control pricing which goes against local marketplace regulations