Foreign companies operating in India’s fast-growing e-commerce sector are under increasing regulatory scrutiny, as authorities pursue multiple investigations for alleged violations of Indian laws.
These actions are part of efforts to protect domestic businesses.
India’s financial crime agency has launched separate investigations into Amazon and Flipkart over possible breaches of foreign investment rules. In 2024, it raided offices of some sellers on both platforms.
The agency has also asked Flipkart and its founders to explain why they should not face a $1.35 billion penalty for violating investment laws.
The same agency has requested sales data and other documents from smartphone makers such as Apple and Xiaomi as part of its ongoing probe into e-commerce operations. In March, India’s product certification agency raided Amazon and Flipkart warehouses in Delhi and seized goods that did not meet required quality standards.
A 2024 investigation by the antitrust body found Amazon and Flipkart favored select sellers on their platforms, in violation of competition rules. Both companies deny the charges. The probe also revealed that smartphone companies like Samsung and Xiaomi worked with Amazon and Flipkart to launch products exclusively on their platforms, which regulators say also broke antitrust rules.
Myntra, the fashion arm of Walmart in India, is facing a separate investigation announced on July 23, 2025. Authorities say it may have violated rules that bar foreign-funded wholesale retailers from selling directly to consumers.
Outside of the e-commerce space, India’s antitrust body found that food delivery companies Zomato and Swiggy gave preferential treatment to certain restaurants on their platforms. At the same time, consumer goods distributors filed a complaint accusing Swiggy, Zomato, and Zepto of unfair pricing practices and called for a broader investigation.
