NAfter a Reuters report on allegedly unfair business practices of the Internet giant Amazon in India, calls for consequences are loud. US Senator Elizabeth Warren reiterated her call for the group to be broken up. The prominent Democrat referred to the Reuters report, according to which Amazon manipulated search results in India in favor of its own products and copied goods from other sellers.
This confirms fears that the group is exploiting its monopoly power. “That is one of the many reasons why we have to break it up.” For years Warren has criticized the market power of companies like Amazon and called for them to be broken up.
Managers should have known about strategy
An evaluation of thousands of internal Amazon documents – emails, strategy papers and business plans – by Reuters revealed that the US company in India systematically manipulated search results and copied products from other manufacturers in order to sell its own goods better. To do this, the company’s own brand team in India secretly used internal data from Amazon.in. Amazon employees looked for so-called “benchmark” or “reference” products from other manufacturers in order to imitate them. The documents also show that senior managers were aware of this strategy. Amazon said the allegations were factually false and insubstantial.
But resistance to the practices of the Internet giant is stirring in India. Stakeholders called for the government to investigate the matter. “Amazon causes a big disadvantage for the small manufacturers. They eat the cake that is not meant for them, ”said Praveen Khandelwal of the Confederation of All India Traders. According to its own information, the group represents 80 million businesses. Indian retailers have long accused foreign e-commerce companies like Amazon and Walmart subsidiary Flipkart of unfair business practices that harm smaller businesses. Amazon and Co deny this.
In an affidavit to Congress last year, Amazon founder Jeff Bezos said the company banned its employees from using data about individual sellers to support its private label business.