Government US companies in the fast-growing e-commerce market Amazon.com And WalmartThe government of India on Friday launched a digital commerce campaign as it seeks to end its dominance (ONDC) Will start an open network, a government document shows. India’s no-confidence watchdog on Thursday accused local Amazon vendors and some Walmart affiliates of violating competition laws. Flipkart The platform was launched after the raid. The companies declined to comment on the raids.
Indian retailers, some small traders to Prime Minister Narendra Modi, have long complained that the platforms of Amazon and Flipkart benefit some big sellers, although the companies say they comply with all Indian laws. The government’s so-called ONDC platform will allow buyers and sellers to connect and interact with each other online, regardless of whether they are using any other application. It will be launched on Friday before the expansion, the trade ministry told Reuters.
The government document states that the two major multinational players control more than half of the country’s e-commerce business, limiting market access, offering preferential treatment to some sellers and squeezing supplier margins. He did not name the companies. Amazon and Flipkart did not immediately respond to requests for comment on ONDC. The document states that India’s ONDC scheme aims to reach 30 million vendors and 10 million merchants online. It is planned to cover at least 100 cities and towns by August. The project document states that with a special emphasis on small businesses and rural consumers, it will focus on applications in local languages for both buyers and sellers.
The government said it has already received support from retailers and venture capital firms. Lenders like State Bank of India, ICICI Bank and Bank of Baroda have already pledged a total investment of Rs 2.55 billion ($ 33.26 million) in ONDC. A Reuters investigation last year, based on Amazon’s internal documents, showed that the company had given preferential treatment to a small group of sellers on its platform for years and violated Indian laws, although Amazon denies any wrongdoing.
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