India’s commerce minister welcomed on Tuesday a Supreme Court choice that Amazon and Walmart’s Flipkart ought to face investigations into alleged anti-competitive behaviour, saying their buying and selling practices can be seemed into.

Piyush Goyal’s feedback are the most recent signal of New Delhi’s discontent with the 2 US e-commerce giants, which have for years confronted allegations of bypassing Indian legal guidelines to run their companies and hurting smaller retailers.

On Monday, the Supreme Court pulled up Amazon and Flipkart for making an attempt to stall investigations ordered in 2020 by the Competition Commission of India (CCI), saying massive organisations like theirs ought to volunteer to help in any inquiry.

Goyal welcomed the courtroom’s choice whereas talking within the Indian parliament, the place he invoked the “Quit India” marketing campaign – a motion launched in 1942 by India’s iconic freedom fighter Mahatma Gandhi demanding an finish to British rule.

“These companies used legal tactics to stall the investigation … I am happy to tell you that yesterday, on the day of the Quit India Movement, all the efforts of these companies failed,” Goyal instructed Indian lawmakers.

“The top court decided that CCI should probe the allegations of fraudulent, unfair trade practices that they engage in,” Goyal added.

Amazon and Flipkart didn’t reply to a request for remark.

The two corporations face an more and more robust regulatory setting in India, the place they’re additionally grappling with the prospect of more durable e-commerce guidelines and investigations by the nation’s monetary crime company for alleged violation of international funding legal guidelines.

In February, a Reuters investigation based mostly on Amazon paperwork confirmed it had given preferential remedy for years to a small group of sellers. Amazon denied any wrongdoing.

Goyal instructed lawmakers the large e-commerce companies have been alleged to function a market web site that connects consumers and sellers, nevertheless it was discovered they “continuously used various legal tactics” that harm small companies.

“The government has taken stern steps,” he mentioned.

© Thomson Reuters 2021