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A day after E-commerce giant Amazon Inc. announced data centers in India, it filed a writ petition in the Karnataka High Court. This move was made to seek an interim stay on the Competition Commission of India’s (CCI’s) order of probing its reported business malpractices. The investigation covers both Amazon and Walmart owned rival Flipkart.
Crux of the Matter
Why Amazon Under Radar? The Investigation by the CCI was launched last month after the Delhi Vyapar Mahasangh (DVM), a traders’ body, filed a complaint against e-commerce players who gave deep discounts and did preferred listings. The order had come a day before Amazon founder Jeff Bezos arrived in India to attend a meeting with small business owners, where he pledged to invest an additional $1 billion to get such companies online.
The Writ Petition In its petition, the American multinational said that the CCI order was passed “without application of mind” and would cause irreparable loss to the reputation of the company if an investigation is allowed. An Amazon spokesperson declined to comment saying “the matter is sub judice”. An email seeking CCI’s response remained unanswered.
CCI’s Response Praveen Khandelwal, secretary-general of Confederation of All India Traders, a traders’ body that has led the protests against Amazon, questioned its motive for opposing the probe. He was quoted as saying “Let the investigation be conducted by CCI, which will make their position clear. The stay application by Amazon is testimony to the fact that something is wrong with its business model.“
Amazon has sought “quashing and setting aside” of the CCI’s probe. https://t.co/ayNp883JNG via @BloombergQuint @praveendel @BCBHARTIA @sumitagarwal_82 @narendramodi @PiyushGoyal @nsitharaman @DIPPGOI @CCI_India @CimGOI @AmitShah @rajnathsingh @JPNadda @PrakashJavdekar — CAIT (@TEAMCAIT) February 11, 2020
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Amazon.com, Inc. is an American multinational technology company based in Seattle that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is considered one of the Big Four tech companies, along with Google, Apple, and Facebook. Amazon is known for its disruption of well-established industries through technological innovation and mass scale. It is the world’s largest online marketplace, AI assistant provider, and cloud computing platform as measured by revenue and market capitalization and is the largest Internet company by revenue in the world. It is the second largest private employer in the United States and one of the world’s most valuable companies. More Info
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