U.S. Senator Wallon London urges Amazon to spin off, Indian retailers hope to investigate after Reuters reports Reuters


© Reuters. File photo: Senator Elizabeth Warren (D-MA) asked Treasury Secretary Janet Yellen and Fed Chairman Powell at the Senate Banking, Housing and Urban Affairs Committee hearing on the CARES bill in the Hart Senate Office Building in Washington, DC


By Aditya Kalra

New Delhi (Reuters)-US Senator Elizabeth Warren called for the split of Amazon.com (NASDAQ:). After a Reuters investigation revealed that the e-commerce giant copied products and manipulated search results, Indian retailers demanded Investigate the company. India.

Reuters reported that https://t.co/PiVEqAgjY6 reviewed thousands of internal Amazon documents and found that the American company had carried out a systematic campaign to create counterfeit goods and manipulate search results to improve its self-reliance in India. There are brands, and India is one of the company’s largest brands. Growth market.

Wednesday’s report showed for the first time that, at least in India, manipulating search results to support Amazon’s own products and copying other sellers’ products is part of Amazon’s formal strategy — it has been reviewed by at least two senior executives.

Link to the story on Twitter (NYSE:) https://twitter.com/SenWarren/status/1448397325047566341. Warren, who has long criticized Amazon, said: “These documents show our concerns about Amazon’s monopoly power-the company is willing to Being able to manipulate its platform to benefit its bottom line, while strengthening the strength of small businesses and entrepreneurs.”

“This is one of the many reasons we need to break it,” she said.

A group representing millions of brick-and-mortar retailers in India said on Thursday that the government must investigate Amazon.

“Amazon has caused a great disadvantage to small manufacturers. They are eating cakes that are not suitable for them,” Praveen Khandelwal of the All India Federation of Traders told Reuters. The group said it represents 80 million retail stores in the country.

Indian retailers say that foreign e-commerce companies such as Amazon and Wal-Mart (NYSE:) Inc’s Flipkart are obsessed with unfair business practices that harm small companies, and these companies have denied these allegations.

Amazon did not respond to a request for comment on the report’s reaction.

In response to a question reported on Wednesday, Amazon said, “We believe these statements are in fact incorrect and unsubstantiated.” The company did not elaborate. It added that Amazon will display “search results based on the relevance of the customer’s search query, regardless of whether such products have a private label provided by the seller.”

The famous Democrat Warren advocated splitting Amazon and other tech giants when he was running for president in 2019. Since then, as a senator from Massachusetts, she has continued to put pressure on companies such as Amazon.

Amazon founder Jeff Bezos said in his testimony in Congress last year that the company prohibits its employees from using individual seller data to help its private label business. And, in 2019, another Amazon executive testified that the company would not use such data to create its own private label products or change its search results to support these products.

Amazon documents reviewed by Reuters show how the company’s private label team in India secretly used the internal data of its Indian department to copy products sold by other companies and then provide these products on its platform.

The company promotes the sales of its own brands (such as AmazonBasics) by manipulating search results on its Indian platform so that its products appear. As a 2016 strategy report said, “In the first two or three… .. Searching results”.

The Digital India Foundation Alliance, a non-profit organization representing some of India’s largest start-ups, said the practices detailed in the Reuters report were “very regrettable” and questioned “Amazon’s credibility as an honest operator in the Indian start-up ecosystem. “”.

In a blog post https://blog.adif.in/p/adif-amazon-reuters-ecommerce-fair-markets, the organization urged the Indian government to take action against “Amazon’s plagiarism, manipulation and stifling of the predatory nature of Indian brands Script “”.

A senior official in the economic department of Rashtriya Swayamsevak Sangh, the ideological parent company of Prime Minister Narendra Modi’s ruling party, urged consumers to avoid the company on Thursday.

“I call on people in this country to #boycottAmazon,” Ashwani Mahajan, co-convenor of Swadeshi Jagran Manch, said on Twitter: https://twitter.com/ashwani_mahajan/status/1448525157476175879?s=20.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *