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- Reuters has prepared the report based on the document between 2012 and 2019.
- CAIT’s National General Secretary is preparing to take the matter to court
American e-commerce giant Amazon is not having a good time. A media report has come against the company already implicated in a lawsuit with Future Group. According to the international news agency Reuters, Amazon has been playing in compliance with the rules here for years.
India is a big market for Amazon and this report can cause problems for it. Reuters has prepared a report based on the document between 2012 and 2019. In this, Amazon is accused of playing many ways with Indian laws.
Traders Association in preparation for going to court CAIT
Pravin Khandelwal, National General Secretary of the Confederation of All India Traders (CAIT), is preparing to take the matter to court after the news from Reuters. He said, “Amazon and Flipkart adopt many methods of business which are wrong in law.” This also encourages other companies to break the rules. Strict punishment should be given in this case, which should set an example.
To act on amazon ED Wrote a letter to
CAIT has been trying for a long time that the government intervene in the matter of e-commerce companies. It wrote a letter to the Enforcement Directorate (ED) last year, demanding strict action against Amazon. It was said that the sale of goods on Amazon’s platform at a very low price is kicking small businesses.
Two thirds of online sales have been getting from 35 vendors
Amazon is believed to get most of its business from certain vendors’ groups. According to Reuters, the company has been receiving two-thirds of online sales from 35 vendors by 2019. These vendors include CloudTel and Aperio, one of which has its indirect stake. CloudTel is funded by Amazon and Narayan Murthy’s joint venture, Priven Business Services, from Catamaran Ventures.
Amazon changed its structure in India in 2018
In December 2018, Amazon changed its structure after the government issued Press Note 2. In February 2019, Catamaran Ventures increased its stake in CloudTel’s parent company, Priven Business Services. This led to Amazon Asia’s share in CloudTel falling from 49% to 24% while Catamaran’s investment increased from 51% to 76%. This made CloudTel no longer part of the Amazon Group. In this way, the rules were followed on paper, but the government’s purpose of changing the rules could not be fulfilled.
The minister said, Stop finding shortcomings in press note 2
Piyush Goyal took over the commerce and industry ministry sometime after such restructuring took place in the Amazon business. He called the chief executive of a dozen top offline and online companies, including Amazon, for the meeting. According to the sources present in the meeting, Goyal had asked the companies to stop circling the lawyers to find the deficiency in Press Note 2 and concentrate on following the rules.
Article written for the purpose of defaming: Amazon
Amazon has issued a statement saying, “The article is written on the basis of baseless, incomplete and / or factually inaccurate information for the purpose of sensationalizing and defaming Amazon.” Amazon has always followed the law. There have been many changes in the rules related to the marketplace and Amazon over the years. We have followed them fast every time. Therefore the article seems to be based on old information. ‘