E-commerce giant Amazon and Amazon’s top Indian Seller cloud tail have decided to break their joint venture after May 2022. Both the firms have announced this decision after the Indian Supreme Court ruled that American E-commerce companies must face antitrust investigation.
Cloudtail, which is owned by billionaire Narayana Murthy and E-commerce giant Amazon, entered the joint venture in the country in 2014. The joint venture restructured its ownership in 2019 following India’s regulatory changes more on this shortly. This development follows India’s Supreme Court ruling that Amazon and Flipkart must face antitrust investigations ordered against them in the country.
The joint venture helped many merchants and small businesses to reach customers all over India. This news was first reported in economic times stating that cloudtail will cease operations from next year. India also has launched a few rules this year. The e-commerce companies must not run any private labels. This proposal asks firms to ensure that none of their associated parties is listed as sellers.Amit Agarwal, Global Senior VP and country head of Amazon India said that Catamaran and the E-commerce giant Amazon entered into the joint venture during the beginning of E-commerce in India.They had a common vision of transforming hundreds and thousands of small businesses to reach customers across India. Digitisation of small businesses will give access globally.