Confederation of All India Traders (CAIT) has filed a petition before the Competition Commission of India (CCI) seeking to block Amazon’s deal to acquire 100% stake in Cloudtail.
It has claimed that the proposed deal once through would have a destabilizing effect on the e-commerce market of India.
“The petition provides evidence to show Cloudtail charges less fees/commission and is a preferential seller on the platform, and with a 100% acquisition of Cloudtail, a preferred seller and the marketplace at its e-commerce portal, Amazon will cause an adverse effect on the market,” CAIT stated.
"A marketplace like Amazon, which is supposed to be fair and neutral and as per rules have to be purely a technology providing forum for conducting e-commerce activities by the sellers who are registered with its portal, continues to unabashedly distort the entire ecosystem. This transaction is not only in violation of competition law but is also a violation of FDI norms too," the traders' body further said.
Source: India Blooms
