Indian antitrust probe finds Amazon and Flipkart in violation of competition laws

The two companies allegedly manipulated their search algorithms to promote preferred sellers.

Amazon and Flipkart have been found to violate local competition laws by favoring select sellers on their platforms, according to an investigation by the Competition Commission of India (CCI).

In a report by Reuters, the CCI's findings, dated August 9, reveal that both companies prioritised certain sellers in search results, disadvantaging others. The 1027-page report on Amazon and the 1,696-page report on Flipkart indicate that these companies manipulated their search algorithms to promote preferred sellers.

Both companies and the CCI have yet to comment on the findings. Amazon and Flipkart have previously denied wrongdoing, stating their practices are legal under Indian law. They will have the opportunity to review the reports and file objections before any potential fines are decided.

The investigation was prompted by a complaint from the Delhi Vyapar Mahasangh, affiliated with the Confederation of All India Traders (CAIT), which represents 80 million retailers. CAIT supports the CCI's findings and plans to escalate the matter to the federal government.