Amazon Seeks Halt On Changes To Indian E-Commerce Foreign Investment Norms: Reuters

Amazon.Com Inc AMZN has asked the Indian government to withhold the changes in the country’s e-commerce foreign investment rules until the investigation conclusion of the e-commerce company’s business practices, Reuters reports.

• The commerce ministry had met e-commerce players after allegations by retailers over Amazon and Walmart Inc WMT subsidiary Flipkart’s bypassing federal foreign investment rules causing damage to small traders. Both companies have refuted the allegations.
• India’s 2018 foreign investment rules compelled Amazon and Flipkart to rework their business structures which had hampered the country’s trade relations with the U.S.
• Last month, Reuters revealed Amazon’s preferential treatment to a small group of sellers on its platform.
• India’s antitrust watchdog acknowledged Reuters’ corroboration of evidence against Amazon. The federal financial crime-fighting agency sought information and documents from the Jeff Bezos-led company.
• India’s Reliance Industries’ retail arm urged the government to clarify the policy alleging foreign firms using complex legal structures for bypassing the rules. Domestic player, Reliance was exempt from regulations prohibiting foreign companies like Amazon and Flipkart from owning inventory sold via their local websites.
• Price action: AMZN shares traded lower by 0.78% at $3,062.95, and WMT shares traded higher by 0.14% at $133.3 on the last check Thursday.