After Indian report, US considers bill to correct predatory practices of Amazon, Retail News, ET Retail
The American Choice and Innovation Online Act, led by Senators Amy Klobuchar (D-Minnesota) and Chuck Grassley (R-Iowa), would prevent platforms like Amazon, Apple and Google from using their online dominance to disadvantage others. companies, reports The Verge.
“When dominant technology companies exclude their rivals and kill the competition, it hurts small businesses and can increase costs for YOU,” Klobuchar said in a tweet Thursday.
“My new bipartisan legislation with Grassley will set new rules of conduct to prevent large companies from crowding out their smaller competitors,” he added.
Third-party sellers have long accused Amazon of similar anti-competitive behavior.
In India, the Alliance of Digital India Foundation (ADIF) and the Confederation of All Indian Traders (CAIT) condemned Amazon’s “predatory playbook” of copying, faking and killing Indian brands, urging the government to intervene in right time.
CAIT National President BC Bhartia and General Secretary Praveen Khandelwal demanded an immediate CBI investigation into the accusations made in the report.
A Reuters report had revealed that the Amazon team in India “secretly exploited Amazon.in’s internal data to copy products sold by other companies and then offered them on its platform,” and also had “rigged Amazon’s search results” so that the company’s products appear at the top.
Sijo Kuruvilla George, executive director of ADIF, said this highlights Amazon’s blatant disregard for competition laws, intellectual property rights and shameful predatory practices.
“The way the e-commerce giant has targeted the Indian market and the country’s major brands is highly deplorable and calls into question Amazon’s credibility as a bona fide operator in the Indian startup ecosystem,” said George.
The report alleged that among the victims of Amazon’s anti-market practices was a popular shirt brand in India called John Miller which is owned by Future Group, founded by Kishore Biyani, currently involved in a legal battle with Amazon.
Amazon is also the subject of an investigation by the Competition Commission of India (ICC) for alleged anti-competitive practices and a parallel investigation by the Enforcement Branch for violation of national laws.
The General Directorate of Tax Intelligence on Goods and Services (DGGI) also issued a notice of justification to one of its subsidiaries, Cloudtail, for GST and indirect tax fraud.