India’s financial crime agency is intensifying its probe into Flipkart and Amazon over alleged violations of foreign investment laws, with plans to summon executives from both companies after recent raids on their sellers. The Enforcement Directorate (ED) seized documents in last week’s raids, which a senior government source claims substantiate violations of India’s foreign investment laws. Under these laws, foreign e-commerce companies are restricted to operating as marketplaces without holding inventory, though the ED alleges that both Amazon and Flipkart have been exerting control over certain sellers.
This investigation adds to the growing regulatory scrutiny faced by the two e-commerce giants, which hold significant market shares in India’s $70 billion e-commerce sector. Previous findings from India’s antitrust authority suggested that both companies favour select sellers, allowing them to bypass marketplace-only regulations. One prominent Amazon seller, Appario, was reportedly raided and found to receive exclusive support from Amazon, including reduced fees and advanced retail tools.
The ED’s latest actions follow a pattern of increased regulatory focus on large e-commerce and delivery platforms, with recent antitrust findings indicating similar preferential treatment by food delivery services Zomato and Swiggy. As India’s retail landscape continues to expand, regulatory bodies are pushing for stricter compliance to ensure fair competition and protect smaller businesses.
India’s antitrust regulator, the Competition Commission of India (CCI), has found that food delivery giants Zomato and Swiggy violated competition laws by favouring select restaurants on their platforms. According to the CCI’s investigation, Zomato used ‘exclusivity contracts’ to offer lower commissions to certain partners, while Swiggy promised growth to restaurants that listed exclusively with them. These practices, the report states, hinder market competition, as they prevent smaller players from gaining a fair foothold.
The investigation, which began in 2022 following a complaint by the National Restaurant Association of India, also highlights restrictive pricing practices on both platforms. Zomato imposed conditions to maintain price and discount parity across online platforms, even threatening penalties for non-compliance. Swiggy, on the other hand, pressured some partners by suggesting their ranking on the app would drop if they failed to match prices elsewhere. Swiggy later claimed that it discontinued its exclusivity program in 2023 but has plans to launch similar initiatives in smaller cities.
The probe has potential implications for Swiggy’s $1.4 billion IPO and lists the CCI investigation as an “internal risk” in its prospectus. Both companies have faced additional scrutiny recently, as India’s largest retail distributors have urged the CCI to investigate alleged predatory pricing in their quick-commerce grocery services. The CCI’s final decision on penalties or required changes to Zomato’s and Swiggy’s business practices is expected in the coming weeks, though the companies may challenge the findings.
The Federal Trade Commission (FTC) has charged Sitejabber, an online review platform, for violating its new rules on fake reviews. This marks one of the agency’s first enforcement actions under updated regulations designed to curb deceptive practices. The FTC alleges that Sitejabber misled consumers by using point-of-sale reviews—feedback collected before customers had received any products or services—to falsely inflate businesses’ review scores.
The company allowed its clients to publish these premature reviews, giving a false impression that they reflected actual customer experiences. The FTC has now ordered Sitejabber to stop this practice and prohibited it from assisting other businesses in misrepresenting reviews. The new rules, which took effect last month, aim to tackle deceptive online review practices, including those involving AI-generated reviews and fake review websites masquerading as independent.
The FTC’s crackdown is part of a broader effort to address the rising problem of fake reviews on e-commerce platforms like Amazon. With the new regulations in place, the agency intends to prevent misleading online content that could deceive consumers into making purchasing decisions based on false information.
The US Supreme Court is currently deliberating whether to allow a securities fraud lawsuit against Facebook, now Meta, to proceed. Investors, led by Amalgamated Bank, allege that the company misled them by failing to disclose details about a 2015 data breach involving Cambridge Analytica, which ultimately affected millions of users. The case questions whether Facebook’s public risk disclosures should have included specific details about this incident rather than presenting it as a potential future risk.
During the hearing, justices debated whether Facebook’s statements to investors were misleading by suggesting the risk was hypothetical. Conservative Chief Justice John Roberts noted that risk disclosures might imply past occurrences, while Justice Clarence Thomas highlighted how a lack of explicit detail might lead investors to believe the incident had never happened. The case has significant implications for the interpretation of the Securities Exchange Act, which requires firms to report business risks transparently.
This lawsuit is one of two upcoming US Supreme Court cases examining corporate transparency in investor disclosures. A ruling in favor of the investors could heighten the standards companies must meet in alerting investors to both past and potential risks, with the decision expected by June.
Cyprus’ financial regulator, the Cyprus Securities and Exchange Commission (CySEC), has extended the suspension of FTX’s European branch by another six months, lasting until 30 May 2025. The continued suspension means that FTX EU remains barred from accepting new clients, providing services, or advertising, though it can still process transactions to return funds to existing clients.
The extension comes as the second anniversary of FTX’s bankruptcy filing approaches. After FTX declared Chapter 11 bankruptcy in the US in November 2022, CySEC halted FTX Europe’s license, questioning the firm’s management suitability and ensuring the protection of client assets. FTX Europe, initially acquired by FTX in 2021 for $323 million, has since been resold to its original owners for $32.7 million following legal disputes over the acquisition price.
FTX Europe’s website currently only supports balance viewing and withdrawal requests. Clients who do not withdraw funds will have their balances moved to a client-segregated account, which will be held for up to six years.
Italy’s data protection authority has criticised Intesa Sanpaolo for underestimating the severity of a data breach that affected thousands of customers, including Prime Minister Giorgia Meloni. The breach, which involved an Intesa employee accessing the data of around 3,500 clients, was initially reported with a higher number of affected individuals. However, the bank later clarified that the number was lower than what had been reported in the media.
The data watchdog instructed Intesa to notify all impacted customers within 20 days and noted that the bank had not adequately communicated the full scope of the breach. The authority emphasised that the breach posed a significant risk to the affected individuals’ rights and freedoms, including potential harm to their financial status and reputation. Intesa had already dismissed the employee involved and informed both the data protection authority and prosecutors.
The authority is now reviewing the bank’s security measures and has asked Intesa to provide an update within 30 days. In response, the bank assured that it had prioritised customer data security and had taken steps to enhance its systems and control procedures. Intesa also stated there was no evidence that the data had been shared outside the bank.
Apple is set to face its first fine under the European Union‘s Digital Markets Act (DMA) for breaching the bloc’s antitrust regulations, according to sources familiar with the matter. This comes after EU regulators charged Apple in June for violating the new tech rules, which are designed to curb the dominance of big tech companies. The fine, expected to be imposed later this month, adds to Apple’s ongoing antitrust challenges in the EU.
In March, Apple was hit with a €1.84 billion fine for restricting competition in the music streaming market through its App Store policies. The company also faces additional investigations related to new fees on app developers and potential violations of the DMA, which could result in penalties of up to 10% of its global annual revenue.
The Digital Markets Act, which came into effect earlier this year, mandates Apple to make changes, such as allowing users to choose default browsers and permitting alternative app stores on its operating systems. Apple has not commented on the impending fine, and the European Commission has yet to provide a response.
The Competition and Markets Authority (CMA) has temporarily halted the proposed £762 million acquisition of UK logistics firm Wincanton by American logistics company GXO, citing potential competition risks. This decision follows the CMA’s preliminary investigation, which raised concerns about the merger’s impact on the already competitive contract logistics services sector.
An interim enforcement order (IEO) is now in effect, preventing any integration of the two firms during the review process. The CMA’s phase 1 investigation indicated that the merger could reduce competition in a market valued at £16 billion in the UK, where GXO and Wincanton are key players competing for contracts with major retailers. Naomi Burgoyne, senior director of mergers at the CMA, warned that diminished competition could lead to higher costs for consumers reliant on efficient delivery services.
GXO has five days to propose solutions to address the CMA’s concerns. If the proposals are found inadequate, the regulator will proceed to a more detailed phase two investigation. In response to the CMA’s announcement, a GXO spokesperson stated that they are reviewing the decision and are committed to collaborating with the CMA to achieve a favourable outcome, asserting that the acquisition would benefit logistics customers across the UK and support government initiatives for economic growth.
A federal judge has dismissed a proposed class-action lawsuit claiming Google illegally profited from scams involving Google Play gift cards. The plaintiff, Judy May, alleged she lost $1,000 after a scammer posed as a government official, instructing her to purchase Google Play gift cards to claim grant money. She argued that Google should have warned consumers about such scams on the card packaging.
However, Judge Beth Labson Freeman ruled that Google was not responsible for May’s losses, as the tech giant neither caused her financial harm nor knowingly benefited from the stolen funds. Freeman also dismissed claims that Google’s 15% to 30% commission on purchases using the gift cards was linked to the initial fraud.
The Federal Trade Commission reported that Americans lost $217 million to gift card fraud in 2023, with Google Play cards implicated in roughly 20% of reported cases. Though May’s case was dismissed, the judge allowed her the option to refile.
Meta has announced an extended ban on new political ads following the United States election, aiming to counter misinformation in the tense post-election period. In a blog post on Monday, the Facebook parent company explained that the suspension will remain in place until later in the week, preventing any new political ads from being introduced immediately after the election. Ads that were served at least once before the restriction will still be displayed, but editing options will be limited.
Meta‘s decision to extend its ad restriction is part of its ongoing policy to help prevent last-minute claims that could be difficult to verify. The social media giant implemented a similar measure in the last election cycle, underscoring the need for extra caution as elections unfold.
Last year, Meta also barred political advertisers and regulated industries from using its generative AI-based ad products, reflecting a continued focus on reducing potential misinformation through stricter ad controls and ad content regulations.
