Amazon and Flipkart, the latter part of the American Walmart, have been ordered to cooperate with an investigation into abuse of power on their online store platforms. According to an Indian market watchdog, both companies are guilty of this.
India’s top judges have ruled that Amazon and Walmart must cooperate, even if they would have to divulge confidential company information, Reuters reports. 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 are also said to have favored certain retailers on their platform at the expense of others.
Amazon and Walmart now have four weeks to answer questions from watchdog Competition Commission of India. Amazon says it will accept the verdict and will cooperate. That is necessary, because there is no appeal against the judgment of the highest judges.