Amazon to invest 1 billion USD in India
The richest man on earth, the founder and CEO of Amazon announced fresh 1 billion USD in India. But union commerce and industry minister Piyush goshala said Amazon is not doing any favor to India because Amazon uses this capital for predatory pricing and makes retailers go bankrupt while Amazon makes no profit. Thus nobody gains in the economy.
The $1 billion investment by amazon.com to help bring small and medium businesses online is on the top of $5.5 billion funding it had previously announced.
Piyush Goyal wondered why an e-commerce market place model, where a firm provides an IT platform for buyers and sellers, incurring huge losses adding that it needs to be looked upon.
FFairtraderegulator Competition Commission of India (CCI) has recently ordered a probe against e-commerce majors Flipkart and Amazon for alleged malpractices, including deep discounting and tie-ups with preferred sellers on their platforms.
Piyush Goyal added that India allows foreign investments in the e-commerce market place model and in this model buyers and sellers are free to trade, but the market place player cannot own the inventory, or they can not determine prices.
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