Amazon.com Inc, a leading U.S. leading technology companies, and one of its biggest sellers in India, Cloudtail, disclosed on Monday their intention to end their relationship, following years of allegations that Cloudtail received preferential treatment.
In a statement jointly issued by the partners, the two partners confirmed that they had mutually decided not to extend a joint venture between Amazon and India’s Catamaran that controlled Cloudtail beyond May 19, 2022, the lapsing date
A news report by Reuters indicated that the decision comes after the news medium’s investigation in February based on Amazon documents showed the U.S. company had given preferential treatment for years to a small group of sellers, including Cloudtail, and used them to bypass India’s foreign investment laws.
However, Amazon denied allegations that it was giving preferential treatment to some sellers and maintained that it complied with the law in its business relationships with other companies it is dealing with.
But then, the statement from Amazon and Catamaran did not indicate why they decided to end their joint venture.
