The Enforcement Directorate (ED) is currently conducting a thorough investigation into the activities of Amazon and Flipkart, two prominent e-commerce companies. The focus of the investigation is on the vendors associated with these platforms, with the aim of determining whether there have been any violations of foreign direct investment (FDI) regulations.

It is being examined whether these platforms have exerted control over their vendors, which would be in contravention of FDI rules that state they should only function as marketplaces. On November 7, the ED carried out searches across the country at the primary sellers linked to Amazon and Flipkart. The investigation seeks to uncover whether the platforms have influenced pricing strategies and if sellers have exceeded the 25 percent sales limit imposed by regulations.

The findings of this investigation could have significant implications for the operations of these major e-commerce players in India.