Amazon to end relationship with Indian seller Cloudtail

Amazon Inc and one of its biggest sellers in India, Cloudtail, have decided to end their relationship, they said on Monday, following years of allegations that Cloudtail received preferential treatment.

A joint venture between Amazon and India's Catamaran that controlled Cloudtail was coming up for renewal on May 19, 2022, and the two sides said in a joint statement they had mutually decided not to extend it beyond that date.

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The decision comes after a Reuters investigation in February based on Amazon documents showed the US company had given preferential treatment for years to a small group of sellers, including Cloudtail, and used them to bypass India's foreign investment laws.

Amazon has said it does not give preferential treatment to any seller and that it complies with the law.

The statement from Amazon and Catamaran did not say why they had decided to end their joint venture.