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CCI to probe Amazon, Flipkart for deep discounts, preferred sellers model

The commission would also attempt to understand the business model of the ecommerce companies through its first ever investigation into the segment

online shopping, ecommerce
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While Amazon and Flipkart have close to 90 per cent e-commerce business (without travel) in India, their share is insignificant in the overall retail universe

Ruchika Chitravanshi New Delhi
Ahead of Amazon founder and CEO Jeff Bezos’ visit, the Competition Commission of India (CCI) has ordered investigation against Amazon and Walmart-owned Flipkart on complaints of deep discounting practices and tie-ups with preferred sellers. 

The anti-trust watchdog said it had found prima facie evidence necessitating a probe by the director general (DG)-investigation to look into alleged anti-competition discounts by the two online marketplaces.  The CCI has directed the DG office to complete the probe within 60 days. 

“We will get to understand the entire business model of the e-commerce sector through this investigation. This is the first time we are