Amazon.com Inc has begun legal action to quash an antitrust investigation against the company, saying it could cause “irreparable” loss and damage to its reputation. Last month the Competition Commission of India (CCI) ordered an investigation of Amazon and rival Flipkart, owned by Walmart, over alleged violations of competition law and certain discounting practices.
Amazon and Flipkart have faced mounting criticism from brick-and-mortar retailers, which accuse the US giants of violating law by racking up billions of dollars of losses to fund deep discounts and discriminating against small sellers. The companies deny the allegations.
The CCI ordered its probe after a New Delhi-based trader group complained that the e-commerce giants were promoting select sellers and in turn hurting business for other smaller players in one of the world’s biggest online shopping markets.
“The entire order passed by (the CCI) is bereft of any foundation,” Amazon said in a February 10 filing to a court in Bengaluru, rejecting the allegations levelled against the company.
