What’s behind India’s new-found animosity towards Amazon?

The US retail giant holds an imposing share of the world’s fastest-growing e-commerce market, second only to Walmart-owned Flipkart

But allegations of anticompetitive practices have now sparked an investigation by the country’s antitrust regulator

Reading Time:5 minutes

Amazon CEO Jeff Bezos speaks at an Amazon event in New Delhi on January 15. Photo: EPA

Published: 9:00am, 27 Jan 2020Updated: 11:01pm, 27 Jan 2020

When Jeff Bezos, founder and CEO of international retail giant Amazon visited India earlier this month, the company likely expected his three-day trip to be a resounding success.

It had arranged for him to meet Bollywood stars, attend photo opportunities and even announce US$1 billion of investment in the country.

But just hours before Bezos was supposed to land, an investigation was launched by the country’s antitrust regulator – the competition commission of India (CCI) – amid allegations Amazon and its Indian home-grown rival Flipkart were engaging in anticompetitive behaviour.

Upon arrival, the Amazon CEO was greeted by smaller traders who announced plans to protest against the company in more than 300 different cities for trying to kill competition from bricks-and-mortar retailers. To make matters worse, he was denied a meeting with a single top government official, after Prime Minister Narendra Modi and his ministers reportedly snubbed him.

Traders staged a demonstration demanding the closure of online shopping platforms Amazon and Flipkart in New Delhi on January 15. Photo: AFP

Midway through the trip, India’s Commerce Minister Piyush Goyal alleged that Amazon was indulging in “predatory prices or some unfair trade practices” and that it “it is not as if they are doing a favour to India when they invest a billion dollars” if that money is used to take business away from Indian companies.

Bezos’ trip might have concluded, but the dust it kicked up is yet to settle: his company is under investigation and the Indian government appears increasingly hostile.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x

What’s behind India’s new-found animosity towards Amazon?

The US retail giant holds an imposing share of the world’s fastest-growing e-commerce market, second only to Walmart-owned Flipkart But allegations of anticompetitive practices have now sparked an investigation by the country’s antitrust regulator

The US retail giant holds an imposing share of the world’s fastest-growing e-commerce market, second only to Walmart-owned Flipkart

But allegations of anticompetitive practices have now sparked an investigation by the country’s antitrust regulator