07:02 AM EST, 11/11/2024 (MT Newswires) -- Amazon.com ( AMZN ) and Walmart ( WMT ) -owned Flipkart executives will be summoned by India's financial crime agency as it investigates potential foreign investment law violations, Reuters reported Monday, citing a senior government source.

This comes after raids on Amazon ( AMZN ) and Flipkart sellers last week, signaling an increase in regulatory scrutiny amid the companies' rising sales in India's e-commerce market.

The latest raids were triggered by antitrust investigation findings that claimed the platforms "had end-to-end control over the inventory and the sellers are just name lending enterprises," according to the report.

An Indian antitrust investigation previously found that the two companies breached laws by favoring select sellers.

The Enforcement Directorate is reviewing documents seized from the sellers during the operation, the source said, adding that business data from sellers and their dealings with the e-commerce companies over the last five years will also be analyzed.

Amazon ( AMZN ) and Flipkart did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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