Amazon Clarifies Significant Legal Fees in India; Assurance of the investigation into the case

US e-commerce giant Amazon has spent over Rs.8,546 crore or US $ 1.2 billion on legal fees over the past two years to maintain its presence and relevance in the Indian retail market during the period 2018-2020.

According to official data from public account filings made by the company, all India-focused Amazon companies together spent Rs 8,546 crore on legal fees in fiscal years 2018-19 and 2019-2020. This represents almost a fifth or 20 percent of its two-year turnover of Rs 42,085 crore.

“Although India is becoming easier to do business, it continues to be a highly regulated market and regulatory compliance has its own costs. But Amazon isn’t the only one with high legal fees. , its Flipkart competitors may have a similar level of spending and so do many large companies, ”said an industry expert.

A legal expert argued that most of the expenses shown as legal fees may not be spent on compliance and litigation. Amazon is currently under investigation into its legal representatives in India who allegedly paid bribes to facilitate its operations in the country.

While the company has not commented on this specific allegation, it said action is being taken quickly for all improper actions.

Among the highest reported legal fees are two entities of an e-commerce player’s Indian companies – Amazon India Ltd (holding company) and Amazon Seller Services Pvt Ltd. – the two have together spent nearly Rs 8,000 crore over the past two years. exercises (FY19 and FY20).

Amazon’s other entities in India – Amazon Retail India, Amazon Transportation Services, Amazon Wholesale, and Amazon Internet Services – also have high levels of legal fees commensurate with their size.

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