India’s highest judges: Amazon must cooperate with investigation into abuse of power

Amazon and Flipkart, the latter part of the American Walmart, must cooperate with an investigation into abuse of power on their platforms for web shops. According to an Indian market watchdog, both companies are guilty of this.

India’s top courts have ruled that Amazon and Walmart must cooperate, even if they have to disclose confidential company information. reports Reuters. Both companies had asked the judges to stop the investigation, because it would reveal trade secrets. The judges did not agree.

Both companies allegedly abused their market power to eliminate competition. This would have happened, among other things, by enforcing exclusivity on certain phone releases or by offering extreme discounts. The companies would also have favored certain retailers on their platform at the expense of others.

Amazon and Walmart now have four weeks to answer questions from the Competition Commission of India watchdog. Amazon says it will abide by the verdict and cooperate. It has to be, because there is no appeal against the verdict of the highest courts.