The government has accused e-tailers Amazon and Flipkart of operating 'hybrid' marketplaces, which were anchored by inventory-based operations through a network of controlled sellers, The Times of India reported.

"Flipkart and Amazon were influencing prices of goods on their platforms through various means, including direct price discounts, covering marketing expenses (marketing campaigns, EMIs, exchange offers) and extending concessional logistics services (packaging, courier, returns), e-wallet cashbacks," a source familiar with the development told the newspaper.

The way Flipkart and Amazon operated in India has hurt the domestic retailers, said the report.

The e-commerce companies involve various intermediaries and group entities in the chain to divide the discount and spread the losses, which triggered the domestic retailers to complain against the e-commerce giant, the report said.