Amazon India said Appario, one of its biggest sellers, will stop listing its products on the online shopping website, after it faced allegations from brick-and-mortar retailers of giving preferential treatment to the seller.
A Reuters investigation last year, based on Amazon documents, showed the U.S. company gave preferential treatment to a small group of sellers including Appario and another one named Cloudtail, and used them to bypass Indian laws.
India’s antitrust body raided Cloudtail and Appario offices in April this year as part of investigations into accusations of anti-competitive practices such as promoting some sellers and giving priority to listings by some.
Amazon said it does not give preferential treatment to any seller and complies with all laws. Amazon agreed to end its relationship with Cloudtail in August last year.
Appario, a joint venture partnership between Amazon and India’s Patni group, has listed products on Amazon India since 2017. The JV will continue, Amazon said in a news statement.
In early 2019, some 35 of Amazon’s more than 400,000 sellers accounted for around two-thirds of its online sales in India. Appario and Cloudtail accounted for 35 percent of the platform’s sales revenue that time.
Amazon has committed investment of $6.5 billion in India.