India’s enforcement directorate raids Amazon and Flipkart sellers

Intensifying their investigation into alleged foreign investment rule violations, Indian authorities have conducted raids on sellers affiliated with e-commerce giants Amazon and Flipkart.
India’s satellite broadband market is projected to grow to $1.9 billion by 2030.

India’s financial crime agency has conducted raids at the offices of several sellers on Amazon and Flipkart, investigating alleged violations of foreign investment rules. This development follows a recent report from India’s antitrust body, which accused the e-commerce giants of favoring certain sellers and limiting fair competition. The Enforcement Directorate (ED) carried out searches in major cities, including New Delhi and Bengaluru, focusing on sellers suspected of being influenced by Amazon and Flipkart to manipulate prices.

This probe adds to Amazon and Flipkart’s regulatory struggles in India, one of their largest and fastest-growing markets. The Indian government has accused both companies of effectively controlling inventory through select sellers, despite regulations prohibiting foreign companies from direct multi-brand retail. Amazon and Flipkart, owned by Walmart, insist they comply with Indian laws and emphasize that they serve only as marketplace platforms.

While neither company has yet responded to these latest raids, they continue to face increasing scrutiny as India strengthens its regulatory approach to foreign e-commerce giants. The outcome could significantly impact how these companies operate within India, as the government seeks to ensure a more level playing field for local sellers.