Amazon will end partnership with its largest Indian seller Cloudtail, know the reason
Amazon.com Inc and Cloudtail have decided to end their partnership. This decision of both the companies will put an end to the dispute that has been going on for the last several years that Cloudtail gets priority over the Amazon platform.
Giant e-commerce platform Amazon.com Inc and its largest seller Cloudtail have decided to end their partnership. This decision of both the companies will put an end to the dispute that has been going on for the last several years that Cloudtail gets priority over the Amazon platform. Cloudtail is actually a wholly owned subsidiary of a company called Prione Business Services. At the same time, Amazon.com Inc and Catamaran established Prione Business Services as a joint venture.
The operating agreement of this joint venture between Amazon.com Inc and Catamaran is due for renewal on May 19, 2022. However, in the meantime, both the companies have issued a joint statement saying that they have together decided not to extend this agreement beyond this date.
The decision comes at a time when a Reuters investigation in February revealed that the US-based e-commerce giant had for several years favored select sellers, including Cloudtail, and used them to comply with India's foreign investment regulations. To escape.
However, Amazon has reiterated on several occasions that it does not give any seller preference and is fully compliant with local laws.
However, the statement issued by Amazon and Catamaran did not provide information as to why they have decided to close their joint venture.
Meanwhile, the Supreme Court on Monday refused any interference in the ongoing antitrust investigation against Amazon, Flipkart. A three-judge bench of the Supreme Court said that big companies like Amazon and Flipkart should themselves come forward against such investigation. In fact, the Competition Commission of India had ordered an inquiry against these companies. Both these companies had approached the Supreme Court regarding this. The companies had appealed to the apex court to order a stay of the investigation.