ED seeks info from Amazon over alleged flouting of FDI rules

<p>
The Enforcement Directorate has asked Amazon.com Inc for information related to its operations in India, as part of the investigation into the alleged violation of foreign direct investment  (FDI) rules by the U.S. e-commerce giant, <em>Reuters</em> reported on Friday citing a senior official of the agency.</p>
<p>
<em>Reuters</em> had in a news report based on internal Amazon documents alleged that the company has for years given preferential treatment to a small group of sellers on its India platform and used them to circumvent the country’s foreign investment rules.</p>
<p>
The report had alleged that Amazon played a “cat-and-mouse game with India's government, adjusting its corporate structures each time the government imposed new restrictions aimed at protecting small traders.”</p>
<p>
<strong>An Amazon spokeswoman in India declined to comment.</strong></p>
<p>
Indian retailers have be continuously alleging that e-commerce giants like Amazon and Walmart’s Flipkart violate government regulations and that their business practices hurt small traders. The companies deny the allegations.</p>
<p>
The documents reviewed by Reuters showed that Amazon helped a small number of sellers prosper on its India platform, giving them discounted fees and helping one cut special deals with big tech manufacturers such as Apple Inc.</p>
<p>
The company has also exercised significant control over the inventory of some of the biggest sellers on Amazon.in, the Reuters report said.  This is not permissible under the official norms.  Amazon, on the other hand, has been claiming that it is merely a trading platform and all the sellers operate independently.</p>