ED Raids Amazon & Flipkart Sellers for Alleged FDI Violations

The Enforcement Directorate (ED) recently conducted searches in Delhi, Bengaluru, Mumbai, Hyderabad, and Panchkula, investigating sellers linked to Amazon and Flipkart over Foreign Exchange Management Act (FEMA) violations. The probe, based on complaints, suggests these e-commerce giants might be influencing product pricing and creating an unfair marketplace by favoring specific vendors.

An earlier Indian antitrust investigation revealed Amazon and Flipkart may prioritize preferred sellers, impacting competition by limiting visibility for others. Commerce Minister Piyush Goyal previously criticized Amazon’s investment practices, suggesting potential predatory pricing tactics. Both companies deny the allegations, affirming compliance with Indian laws.

The ED’s ongoing investigation could lead to stricter regulations on foreign e-commerce players in India, aiming for a balanced marketplace.

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