Amazon.com Inc. stressed that it has zero tolerance towards corruption and will investigate all allegations of corruption fully, responded the e-commerce giant to a report by an Indian news outlet. The news outlet has stated that the U.S. e-commerce giant has begun an internal investigation into claims of bribery.
The report came from the Morning Context, a two-year-old media site that typically covers local affairs as the U.S. company started a probe into its legal representatives’ conduct in India. Amazon didn’t address specifics in the report but stated them after the report was released.
“We have zero tolerance for corruption. are We take allegations of improper actions seriously, investigate them fully, and take appropriate action. We are not commenting on specific allegations or the status of any investigation at this time.”
the investigation underway by the company is due to accusations that the legal fees paid by the company have been used as bribes. The company has also placed a senior employee on leave, according to the report from the Morning Context said.
Andy Jassy, Amazon’s new chief executive officer, is targeting India for growth even as challenges mount in what is arguably the online retailer’s most important market for expansion. The company is up against Walmart Inc.-backed Flipkart Internet Pvt. as well as billionaire Mukesh Ambani’s retail websites including JioMart. Since India is a potential market topping a billion consumers the competition is fierce for e-commerce dominance in the market and things are harder since an Indian tycoon is also involved in the battle.
To make problems hard for the company, the Supreme Court of India has allowed for an antitrust investigation against Amazon’s local unit for allegedly abusing their dominance by offering deep discounts and preferential treatment to some vendors. The country is also reportedly tightening regulations for online retailers after years of protests by local brick-and-mortar traders who fear that deep-pocketed global competition could push them out of business.
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