CRIMINAL CAPITALI$M BIG TECH
Amazon Vows ‘Zero Tolerance’ for Graft After India Probe Report
Saritha Rai
Mon., September 20, 2021
(Bloomberg) -- Amazon.com Inc. stressed it has zero tolerance for graft and will investigate all allegations of corruption fully, responding to a report by an Indian news outlet that the U.S. e-commerce giant has begun an internal investigation into claims of bribery.
The U.S. company started a probe into its legal representatives’ conduct in India, the Morning Context, a two-year-old media site that typically covers local affairs, reported Monday, citing three people familiar with the matter. Amazon didn’t address specifics in the report but issued the statement after Bloomberg contacted local spokespeople for comment.
“We have zero tolerance for corruption,” Amazon said in its emailed response. “We take allegations of improper actions seriously, investigate them fully, and take appropriate action. We are not commenting on specific allegations or the status of any investigation at this time.”
A whistleblower within Amazon flagged the alleged bribery issues in its Indian operations, prompting the company to start its probe, the Morning Context said. Amazon is investigating accusations that legal fees paid by the company have been used as bribes, the news outlet reported. The company has placed a senior employee on leave, the Morning Context said, citing two individuals who work with Amazon’s in-house legal team.
Andy Jassy, Amazon’s new chief executive officer, is targeting India for growth even as challenges mount in what is arguably the online retailer’s most important market for expansion. The company is up against Walmart Inc.-backed Flipkart Internet Pvt. as well as billionaire Mukesh Ambani’s retail websites including JioMart, all seeking a bigger slice of a potential market topping a billion consumers. Amazon, which employs more than 100,000 across India, has pledged to digitize 10 million small business, enable $10 billion in exports and create two million jobs in the country by 2025.
Last month, India’s Supreme Court allowed an antitrust investigation to proceed against Amazon’s local unit and Flipkart for allegedly abusing their dominance by offering deep discounts and preferential treatment to some vendors. The South Asian nation is tightening regulations for online retailers following years of protests by local brick-and-mortar traders who fear that deep-pocketed global competition could push them out of business.
Amazon, Walmart's Flipkart must face India antitrust probe, top court says
By Aditya Kalra and Abhirup Roy 2021-08-09
Saritha Rai
Mon., September 20, 2021
(Bloomberg) -- Amazon.com Inc. stressed it has zero tolerance for graft and will investigate all allegations of corruption fully, responding to a report by an Indian news outlet that the U.S. e-commerce giant has begun an internal investigation into claims of bribery.
The U.S. company started a probe into its legal representatives’ conduct in India, the Morning Context, a two-year-old media site that typically covers local affairs, reported Monday, citing three people familiar with the matter. Amazon didn’t address specifics in the report but issued the statement after Bloomberg contacted local spokespeople for comment.
“We have zero tolerance for corruption,” Amazon said in its emailed response. “We take allegations of improper actions seriously, investigate them fully, and take appropriate action. We are not commenting on specific allegations or the status of any investigation at this time.”
A whistleblower within Amazon flagged the alleged bribery issues in its Indian operations, prompting the company to start its probe, the Morning Context said. Amazon is investigating accusations that legal fees paid by the company have been used as bribes, the news outlet reported. The company has placed a senior employee on leave, the Morning Context said, citing two individuals who work with Amazon’s in-house legal team.
Andy Jassy, Amazon’s new chief executive officer, is targeting India for growth even as challenges mount in what is arguably the online retailer’s most important market for expansion. The company is up against Walmart Inc.-backed Flipkart Internet Pvt. as well as billionaire Mukesh Ambani’s retail websites including JioMart, all seeking a bigger slice of a potential market topping a billion consumers. Amazon, which employs more than 100,000 across India, has pledged to digitize 10 million small business, enable $10 billion in exports and create two million jobs in the country by 2025.
Last month, India’s Supreme Court allowed an antitrust investigation to proceed against Amazon’s local unit and Flipkart for allegedly abusing their dominance by offering deep discounts and preferential treatment to some vendors. The South Asian nation is tightening regulations for online retailers following years of protests by local brick-and-mortar traders who fear that deep-pocketed global competition could push them out of business.
Amazon, Walmart's Flipkart must face India antitrust probe, top court says
By Aditya Kalra and Abhirup Roy 2021-08-09
© Reuters/DADO RUVIC
Small toy shopping cart is seen in front of displayed Amazon and Flipkart logos in this illustration
NEW DELHI (Reuters) -Amazon.com Inc and Walmart's Flipkart must face antitrust investigations ordered against them in India, the country's Supreme Court ruled on Monday, in a blow to the leading e-commerce giants which had urged judges to quash the inquiries.
The Competition Commission of India (CCI) ordered the investigation against the companies last year https://www.reuters.com/article/us-india-antitrust-ecommerce/india-orders-antitrust-probe-of-amazon-walmarts-flipkart-idUSKBN1ZC1BO for allegedly promoting select sellers on their e-commerce platforms and using business practices that stifle competition.
The companies deny any wrongdoing and mounted legal challenges in lower courts https://www.reuters.com/technology/india-court-quashes-amazon-flipkart-plea-against-antitrust-probe-2021-07-23 and at the Supreme Court against the investigation, saying the CCI did not have enough evidence to pursue the matter.
A three-judge Supreme Court bench, led by Chief Justice N.V. Ramana, said companies like Amazon and Flipkart should volunteer for such investigations.
"We expect organisations like Amazon and Flipkart, big organisations, they have to volunteer for inquiry and transparency. We expect that and you don’t even want (an) inquiry," Justice Ramana told the court.
"You have to submit and an inquiry has to be conducted."
Amazon in a statement said it complies with all laws and "will extend full cooperation to the CCI investigation". Flipkart too said it complies with Indian laws and will cooperate with investigators.
Amazon and Flipkart are leading players in an e-retail market India forecasts will be worth $200 billion by 2026. The decision is a major setback for both companies as the Supreme Court appeal was seen as the last legal recourse to block the CCI pressing on with its investigation.
In the current antitrust case, filed by trader group Delhi Vyapar Mahasangh, the two companies face allegations of exclusive launches of mobile phones, promotion of select sellers on their websites and deep discounting practices that drive out competition.
Amazon and Flipkart had also asked the Supreme Court to put on hold the CCI's recent request for information in which they were asked 32 questions - including details of top 100 sellers and top-selling products. The companies argue such queries relate to "sensitive" business information.
Justice Ramana said on Monday the companies will have four more weeks to answer those queries.
In February, a Reuters investigation https://reut.rs/3xyz8er based on Amazon documents showed it had given preferential treatment for years to a small group of sellers. The CCI has said the Reuters story corroborated evidence https://reut.rs/3eTV2CX it had received against the company. Amazon has denied any wrongdoing.
The companies are also grappling with the prospect of tougher e-commerce regulations and investigations by the country's financial-crime agency for alleged violation of foreign investment laws.
In another legal challenge, the Supreme Court last week handed Amazon a victory https://reut.rs/37u8FnK by blocking its partner Future Group from selling $3.4 billion in retail assets to rival Reliance Industries. The CCI though has accused Amazon of concealing facts when it sought approval for a 2019 deal with the Future unit that has sparked the legal dispute, Reuters has reported https://www.reuters.com/technology/exclusive-india-watchdog-accuses-amazon-concealing-facts-deal-future-group-unit-2021-07-22
NEW DELHI (Reuters) -Amazon.com Inc and Walmart's Flipkart must face antitrust investigations ordered against them in India, the country's Supreme Court ruled on Monday, in a blow to the leading e-commerce giants which had urged judges to quash the inquiries.
The Competition Commission of India (CCI) ordered the investigation against the companies last year https://www.reuters.com/article/us-india-antitrust-ecommerce/india-orders-antitrust-probe-of-amazon-walmarts-flipkart-idUSKBN1ZC1BO for allegedly promoting select sellers on their e-commerce platforms and using business practices that stifle competition.
The companies deny any wrongdoing and mounted legal challenges in lower courts https://www.reuters.com/technology/india-court-quashes-amazon-flipkart-plea-against-antitrust-probe-2021-07-23 and at the Supreme Court against the investigation, saying the CCI did not have enough evidence to pursue the matter.
A three-judge Supreme Court bench, led by Chief Justice N.V. Ramana, said companies like Amazon and Flipkart should volunteer for such investigations.
"We expect organisations like Amazon and Flipkart, big organisations, they have to volunteer for inquiry and transparency. We expect that and you don’t even want (an) inquiry," Justice Ramana told the court.
"You have to submit and an inquiry has to be conducted."
Amazon in a statement said it complies with all laws and "will extend full cooperation to the CCI investigation". Flipkart too said it complies with Indian laws and will cooperate with investigators.
Amazon and Flipkart are leading players in an e-retail market India forecasts will be worth $200 billion by 2026. The decision is a major setback for both companies as the Supreme Court appeal was seen as the last legal recourse to block the CCI pressing on with its investigation.
In the current antitrust case, filed by trader group Delhi Vyapar Mahasangh, the two companies face allegations of exclusive launches of mobile phones, promotion of select sellers on their websites and deep discounting practices that drive out competition.
Amazon and Flipkart had also asked the Supreme Court to put on hold the CCI's recent request for information in which they were asked 32 questions - including details of top 100 sellers and top-selling products. The companies argue such queries relate to "sensitive" business information.
Justice Ramana said on Monday the companies will have four more weeks to answer those queries.
In February, a Reuters investigation https://reut.rs/3xyz8er based on Amazon documents showed it had given preferential treatment for years to a small group of sellers. The CCI has said the Reuters story corroborated evidence https://reut.rs/3eTV2CX it had received against the company. Amazon has denied any wrongdoing.
The companies are also grappling with the prospect of tougher e-commerce regulations and investigations by the country's financial-crime agency for alleged violation of foreign investment laws.
In another legal challenge, the Supreme Court last week handed Amazon a victory https://reut.rs/37u8FnK by blocking its partner Future Group from selling $3.4 billion in retail assets to rival Reliance Industries. The CCI though has accused Amazon of concealing facts when it sought approval for a 2019 deal with the Future unit that has sparked the legal dispute, Reuters has reported https://www.reuters.com/technology/exclusive-india-watchdog-accuses-amazon-concealing-facts-deal-future-group-unit-2021-07-22
Amazon has said it is confident of addressing those concerns.
(Reporting by Aditya Kalra in New Delhi and Abhirup Roy in Mumbai; Editing by Kirsten Donovan, Sanjeev Miglani and Raju Gopalakrishnan)
(Reporting by Aditya Kalra in New Delhi and Abhirup Roy in Mumbai; Editing by Kirsten Donovan, Sanjeev Miglani and Raju Gopalakrishnan)
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