March 20 (Reuters) - Retail giants Amazon ( AMZN ) and
Walmart ( WMT )-owned Flipkart violated Indian quality control
rules by stocking products that did not have the required
standards certificate, India's top government-run product
certification agency said on Thursday.
Raids on warehouses operated by both firms, conducted on
Wednesday by the Burueau of Indian Standards in the Tiruvallur
district of the southern Indian state of Tamil Nadu, found that
the firms had violated rules by storing, selling and exhibiting
products that did not carry the BIS standard mark, a government
statement said.
Amazon ( AMZN ) and Flipkart did not immediately respond to requests
for comment.
The raids are the latest headache for the two firms, leading
players in India's e-commerce market which consultancy firm Bain
estimated was worth $57 billion-$60 billion in 2023 and set to
top $160 billion in value by 2028.
At the Amazon ( AMZN ) warehouse, 3,376 products without the standard
mark, including flasks, insulated food containers, toys and
ceiling fans were seized, according to the statement, while
officials seized diapers, casseroles and stainless steel water
bottles from the Flipkart warehouse.
Last September, an anti-trust investigation found that both
companies violated local competition laws by giving preference
to select sellers on their shopping websites.
A few weeks later, in November, investigators raided a
number of Amazon ( AMZN ) and Flipkart sellers following a 2021 Reuters
investigation based on internal Amazon ( AMZN ) documents that showed the
company had for years given preferential treatment to a small
groups of sellers, and used them to bypass Indian laws.
Amazon ( AMZN ) has denied wrongdoing.