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The Modi Government seems determined to teach US online store Amazon a big lesson. Several small and mid level retail traders are strongly opposing Amazon's foray into online retail. In deference to the feelings of the retailers, the Government has so far not given any appointment to Amazon CEO Jeff Bezos, who is visiting India now. To add to the problems, India's commerce minister Piyush Goel has said in an unusually strong statement that Amazon should abide by the rules and regulations imposed by the Government of India.
He also said that Amazon was not doing India a favour by investing a billion dollars in the country. It is investing to reduce its losses in India, he said. With this kind of statements, it now appears highly unlikely that Amazon CEO would get to meet even Union Commerce Minister Piyush Goel. "The meeting may not take place," said a trade analyst.
Questions are also being raised over the huge discounts that Amazon is offering to its customers. Already, Amazon is facing a probe in the European Union and the US. The Competition Commission of India too is probing a complaint filed against Amazon by the Delhi Vyapari Maha Sangh, which said that Amazon was resorting to unfair trade practices.