Bloomberg - Amazon.com Inc. stressed it has zero tolerance for corruption and will investigate all allegations of corruption fully, responding to a report by an Indian news outlet that the U.S. e-commerce giant has begun an internal investigation into claims of bribery.
The U.S. company started a probe into its legal representatives conduct in India, Morning Context, a two-year old material that typically covers local affairs, reported Monday, citing three people familiar with the matter. Amazon didn t address specifics in the report, but issued the statement after Bloomberg contacted local spokespeople for comment.
We are zero tolerance for corruption, Amazon reportedly said in its emailed response. We take allegations of improper action seriously, take appropriate action and investigate them thoroughly. At this time, we are not commenting on specific allegations or the status of any investigation at this time. A whistleblower within Amazon disclosed allegations of corruption issues in its Indian operations, prompting the company to start its probe, the Morning Context said. Amazon is investigating accusations that legal fees paid by the company have been used as bribes, the news outlet reported. The company has placed a senior employee on leave, the Morning Context reported, in denoting two individuals working for Amazon's in-house legal team.
Andy Jassy, Amazon's new chief executive officer, targeting India for growth even as challenges mount in what is arguably the most important market for online retailers. The company is backed by Flipkart Internet Pvt. against Walmart Inc. as well as billionaire Mukesh Ambani s retail websites including JioMart, all seeking a bigger slice of a potential market topping a million consumers. Amazon, which employs more than 100,000 in India, has pledged to digitize 10 million small companies, enable $10 billion in exports and create two million jobs in the country by 2025.
Last month, Supreme Court of India allowed an antitrust investigation to proceed against Flipkart's local unit and Amazon for allegedly abusing their dominance by offering deep discounts and preferential treatment to some vendors. The South Asian nation is tightening the regulations for local brick and mortar shops following years of protests by online retailers who fear that deep-pocketed global competition could push them out of business.