Amazon India denies it gives select sellers preferential treatment

Amazon’s Indian business has denied accusations that it favors select merchants and brands, responding to a complaint lodged by an Indian lobby group.

The All India Online Vendors Association (AIOVA) on Friday filed a petition with the Competition Commission of India (CCI) alleging that the online retailer favors merchants that it partly owns, such as Cloudtail and Appario.

The company said on Monday that all sellers on its platform are treated equally.

“Amazon has an equal relationship with all the sellers on our marketplace,” Amazon India spokeswoman Bhumika Shah said in an email, adding that the company is “absolutely committed” to compliance with local laws.

AIOVA, which represents more than 3,500 online sellers, said that large sellers such as Cloudtail and Appario were being charged significantly less than Amazon’s advertised rates.

Cloudtail is owned by Prione Business Services, which is a joint venture between Amazon and Infosys co-founder N.R Narayana Murthy’s Catamaran Ventures. Appario is a joint venture between Amazon and Patni group.

About the author

Jacob Ross

Jacob Ross

Jacob Ross is an MBA candidate at Stanford’s Graduate School of Business. He has worked in venture capital and as a writer at CR, which he joined as a Stanford sophomore, writing a profile of a popular startup on campus: PPber.

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