Is Amazon really the East India Company 2.0 ? Here know All the aspect

E-commerce major Amazon has been termed as "East India Company 2.0" by the, Panchjanya, which has also alleged that the firm has paid crores of rupees in bribes for favourable government policies.

East India Company 2.0, RSS linked magazine
Source: Panchjanya

In its latest edition Panchjanya has carried a cover story that is highly critical of Amazon.

The East India Company (EIC) was a British, joint-stock company founded in 1600. It was formed to trade in the Indian Ocean region, initially with the East Indies (the Indian subcontinent and Southeast Asia), and later with China.

The company seized control of large parts of the Indian subcontinent, colonised parts of Southeast Asia and Hong Kong, and maintained trading posts and colonies in the Persian Gulf Residencies the company rose to account for half of the world's trade during the mid-1700s and early 1800s, particularly in basic commodities including cotton, silk, indigo dye, sugar, salt, spices, saltpetre, tea, and opium.

Whatever the East India Company did in the 18th century to capture India, the same is visible in the activities of Amazon," the article titled "East India Company 2.0" reads. 

Claiming that Amazon wants to establish its monopoly in the Indian market, it says, "For doing so, it has started taking initiatives for seizing the economic, political and personal freedom of the Indian citizens." Hitting out at Amazon's video platform, Prime Video, the article says it has been releasing movies and television series that are against the Indian culture.

It also alleges that Amazon has established many proxy entities and "there are reports that it has distributed crores in bribes for policies in its favour.

There have been reports that the US e-commerce giant is investigating alleged bribes paid by its legal representatives in India and it spent a staggering Rs 8,546 crore or USD 1.2 billion in legal expenses for maintaining a presence in the country during 2018-20.

There are five major criticisms of the online retail platforms.

One, the massive discounts they offer is killing offline retail, including neighbourhood grocery stores.

Two, they give preferential treatment to large sellers.

Three, they indulge in cross-selling and are aggressively pushing private labels.

Four, they exploit small sellers by charging high fees and yet expect them to give hefty discounts to customers.

And five, they often find a way around (e commerce) regulations to continue engaging in all the four practices.

Amazon India has a 31.2% market share.

Smalll traders can sell on Amazon however - in order to be a successful seller on Amazon, you will have to not only give them a percentage of the sale itself, but also pay for advertising on the site in order to get in front of customers, and pay for their distribution. services.

Amazon is also using the data collected from consumers on its site to identify lucrative and successful products that they will then create a version of under their own brand names.

Guess which company's product will appear first in a browser's search results?

This power is used to create an unfair playing field, engage in anti-competitive behavior, and crush the very small businesses

While this pandemic has caused 1 in 6 small businesses to close (so far) and the Indian economy to shrink by 23%, Amazon's astronomical earnings during this same time only prove that their market share is enormous, and growing.

CAIT(Confederation Of All India Traders) said that such control allows them do predatory pricing, deep discounting, preferential treatment of sellers with capital dumping through their affiliate sellers at its root.

All this is done to gain the market share and make illegitimate financial gains at the expense of livelihood of 8.5 crores small merchants, their dependent families and employees.

So, eventually, Amazon will own the platform, all the products for sale on the platform, as well as the network for the distribution of products (not to mention all of the data they are gathering on each and every person that shops and browses on their site).

And if they become one of a few places to purchase consumer goods, they will then have the ability to set the price for those goods.

this type of concentrated market power is a very disturbing trend in the Indian economy, leads to a decline in competition, fewer new jobs, and further income inequality.

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