Amazon chief executive officer (CEO) Jeff Bezos has announced that the company will invest $1 billion in small businesses in India.
CEO Jeff Bezos announced that Amazon will make an investment of $1 billion to digitize mall and medium businesses in India to allow then to sell and operate online. He calls India a key growth market for the e-commerce giant.
Speaking at a company event in New Delhi, Bezos said the 21st Century is "going to be the Indian century". The event is part of Bezos' three-day visit to India, which is expected to be bombarded by protests.
During the event, Bezos said: "The dynamism, the energy... the growth. This country has something special - and it's a democracy." He mentioned that Amazon expects to export $10 billion worth of India-made goods by 2025 and that the online retailer has already committed to $5.5 billion of investment in the country.
Amazon faces antitrust investigation
Thousands of small business owners across 300 cities in the country have organized demonstrations against Amazon and their perceived impact of the firm on the local retail market.
The Competition Commission of India, the country’s antitrust regulator, has initiated an investigation into the e-commerce businesses of Amazon and Flipkart in the country.
A New Delhi trade group alleges that Amazon and Walmart-owned Flipkart gave preferential treatment to some sellers on their platforms. According to the group, the two retail giants give big discounts and more prominent listings to those sellers, many of which they control or have a stake in.
The trade group added that the two firms also give preference to products from their in-house brands as well as signed exclusive deals with several companies, particularly smartphone makers.
According to a Flipkart spokesperson, the company was “fully compliant” with Indian laws and regulations. The spokesperson added: “We are currently reviewing the document.”
Amazon has also denied the allegations and offered full cooperation with the investigation. A company spokesperson said: "We welcome the opportunity to address allegations made about Amazon; we are confident in our compliance, and will cooperate fully with CCI."
