India's Appario to stop selling on Amazon

One of the subsidiaries of Frontizo Business Services Private Limited, and a major seller on Amazon in India, Appario will stop listing items on the shopping site. The U.S. company made this announcement after facing accusations from regular retailers that it had given preferential treatment to this seller.

The Reuters investigation found that for years Amazon had granted preferential treatment to a small group of sellers, including Appario, and used it to circumvent Indian laws.

Appario, a joint venture between Amazon and India's Patni Group, has been listing goods on Amazon India since 2017.

The U.S. company said in a statement that the joint venture would continue to operate regardless of Amazon's departure from the platform. It also mentioned that Appario will refuse to list products on amazon.in and amazon.in/business for the next 12 months. The partners will continue to explore new development opportunities for businesses, as well as help businesses across India expand their reach on the vast expanse of the Internet.

According to a Reuters investigation, Amazon gave Appario discounts and access to Amazon's global retail tools, which are used for inventory management.

In April of this year, India's antitrust agency conducted searches of Appario's offices as part of an investigation into allegations of anticompetitive practices, such as the promotion of preferred sellers.

India is a key growth market for Amazon, where the company has invested $6.5 billion, but faces several regulatory challenges, including stricter investment rules laws.