Traders body CAIT has demanded a ban on Amazon after Reuters reported the e-tailer's selective and preferential treatment to select sellers on its platform for years. According to the report, Amazon used these select sellers to circumvent India’s foreign direct investment regulations.

According to the report, Amazon has played a “cat-and-mouse” game with India’s government. It continuously adjusted its corporate structure to adapt to India’s restrictions aimed at protecting small traders.

In a press release on Monday, CAIT President, Praveen Khandelwal sought the government to take action on large e-commerce firms, especially Flipkart and Amazon. He said these “shocking revelations” are enough to ban the operations of amazon in the country.

Of the 4 lakh sellers that Amazon boasts, only 35 controlled 66 percent or two-thirds of its business on the platform. Amazon helped these sellers by giving them discounted fees and helping them in closing deals with large manufacturers such as Apple.

CAIT challenged Amazon to reveal the names of the traders that have been on the receiving end of its preferential treatment. The traders’ body is contemplating moving to court based on the details that emerged through the Reuters report.

Shortly after CAIT’s call for a ban, Amazon took to Twitter to criticise Reuters’ report and said it is “unsubstantiated, incomplete, factually incorrect,” without explaining anything.

With Amazon facing increasing scrutiny by Indian regulators, news of the strategy detailed in the exposed documents could deepen risks in one of its key growth markets.

First Published:Feb 18, 2021 1:42 PM IST