Mumbai | The Confederation of All India Traders (CAIT) has called upon the Competition Commission of India (CCI) to accelerate investigations into Amazon's alleged anti-competitive practices. CAIT accuses the e-commerce giant of utilizing dark pattern practices that harm consumers. It has come to light that Amazon has been coercing customers into subscribing to its Prime membership, making cancellation an arduous task.
CAIT's communication to the CCI also mentions that the Federal Trade Commission (FTC) in the United States is preparing a significant case against Amazon for leveraging its market dominance to create an unfair playing field in the e-commerce sector.
CAIT's national leaders, including President Sri B. C. Bhartia, Secretary General Sri Praveen Khandelwal, National Secretary Sri S.S. Manoj, and National Working Committee Member Sri P. VenkItarama Iyer, highlight the FTC's allegations that Amazon rewards sellers utilizing its logistics and delivery services while penalizing those who do not.
The leaders emphasize that the logistics and delivery fees imposed by Amazon add to the platform's other charges, such as advertising, warehousing, and fixed costs. Over the years, Amazon's total platform fee for sellers has risen sharply, from 35% in 2016 to over 50% in 2022. This reduced income significantly impacts sellers who must cover expenses and other costs out of their remaining share.
FTC's investigation also targets Amazon's algorithm for selecting sellers for the "Buy Box" feature, which simplifies the purchasing process for consumers. The agency suspects the algorithm may be rigged, prompting further scrutiny.
CAIT asserts that Amazon's practices in India mirror those under investigation by the FTC. The e-commerce giant allegedly favors a select few preferred/controlled/related sellers and service providers, disadvantaging independent sellers. Amazon's tactics reportedly include deep discounting on products supplied to preferred sellers, enabling predatory pricing, funding losses for these sellers, and granting them favorable advertising space.
Additionally, CAIT points out that multiple investigations are already pending against Amazon in India for violations of foreign direct investment (FDI) policies and competition laws. Consequently, CAIT urges the CCI to expedite its ongoing investigations and suspend Amazon's operations in India until these inquiries reach a conclusion.