ED shifts focus to Amazon and Flipkart ties with preferred sellers

The Enforcement Directorate (ED) is intensifying its probe into whether Amazon and Flipkart violated foreign direct investment (FDI) regulations by exerting control over vendors on their platforms, reported The Economic Times citing sources. The investigation, which initially focused on sellers, is now scrutinising the e-commerce giants’ relationships with their vendors.

Under India’s FDI rules, e-commerce platforms are prohibited from exercising control over vendors and are required to operate solely as neutral intermediaries.