After Sellers, ED Shifts Probe Into Amazon & Flipkart Vendors

The Enforcement Directorate (ED) has shifted its probe to investigate Amazon and Flipkart’s vendors, focusing on potential violations of foreign direct investment (FDI) norms. The ED aims to determine if the e-commerce giants exercised control over vendors, which would breach FDI rules requiring them to operate as neutral intermediaries. The investigation follows earlier probes into the companies’ relationships with preferred sellers. The ED conducted searches at locations linked to major sellers on Amazon and Flipkart, seeking to uncover whether the platforms influenced pricing or if sellers exceeded the 25% sales limit. The probe highlights ongoing regulatory scrutiny of e-commerce practices in India.