Amazon and Patni Group-owned Zodiac said in a statement that they have agreed to renew their joint venture, called Frontizo Business Services, but have decided that Appario Retail will “cease to be a seller” on Amazon India within the next 12 months.
“The partners will continue to explore new business opportunities, including helping businesses across India to scale up their online presence,” an Amazon spokesperson in India told TechCrunch in a statement.
The investigation found that about 35 of Amazon’s more than 400,000 sellers in India in 2019 accounted for around two-thirds of sales on its India website. Of that figure, two sellers, Cloudtail and Appario, contributed 35% of the platform’s sales.
Amazon, which has denied accusations that it gives any seller preferential treatment, cut ties with Cloudtail last year.
India’s Supreme Court last year ruled that Amazon and Walmart-owned Flipkart must face antitrust investigations ordered against them in the country.
The Indian watchdog — the Competition Commission of India — ordered an investigation into the firms in 2020 for allegedly promoting select sellers (those in which they own a stake) on their e-commerce platforms and using business practices that stifle competition.
Long-standing laws in India restrict Amazon and other e-commerce firms from holding inventory or selling items directly to consumers. To bypass this, firms have operated through a maze of joint ventures with local companies that operate as inventory-holding firms.
Amazon to delist top seller Appario on India marketplace amid regulatory heat by Manish Singh originally published on TechCrunch
