Allegation against Amazon is that through the “name lending companies” that it actually owns, it has been buying branded goods in bulk from manufacturers, rendering small sellers uncompetitive by a wide margin and influencing prices. 3 (Flipkart) to ascertain” whether they have been “contravening” any Fema provisions. Telecom Watchdog, through advocate Pranav Sachdeva, had alleged that the e-commerce giants “circumvented” FDI rules “by creating a number of name lending companies”. Allegation against Flipkart is that through the “name lending companies” that it actually owns, it has been buying branded goods in bulk from manufacturers, rendering small sellers uncompetitive by a wide margin and influencing prices. (Shutterstock)The allegation against Amazon and Flipkart is that through the “name lending companies” that they actually own, the two have been buying branded goods in bulk from manufacturers, rendering small sellers uncompetitive by a wide margin and influencing prices.

Source: The Telegraph November 15, 2018 21:11 UTC