The CCI had launched an investigation in January last year based on a complaint alleging that Amazon and Flipkart promoted select sellers on their e-commerce platforms.
Flipkart
Walmart’s Flipkart has filed a legal challenge against an Indian court’s decision to allow the resumption of the antitrust investigation, sources with knowledge of the same told Reuters on Thursday. Sources said Flipkart has urged the court in Karnataka to quash the antitrust watchdog’s order of investigation against the company.
The Competition Commission of India (CCI) had launched an investigation in January last year on the basis of a complaint alleging that Amazon and Flipkart promoted select sellers on their e-commerce platforms and that high discounts affected competition. . The companies have denied wrongdoing. After a stay for more than a year, the court last week allowed the investigation to continue, dismissing the petitions made by the companies.
Reuters reported this week that the antitrust watchdog plans to expedite investigations into allegations of anti-competitive behavior on Amazon and Flipkart, as it pushes for investigations into big-tech firms.
Know the whole matter here
The Karnataka High Court on Friday dismissed the petitions of Amazon and Flipkart to quash the Competition Commission of India’s inquiry order into alleged violation of provisions of competition laws. The Competition Commission of India (CCI) had directed an inquiry into the two major e-commerce companies for alleged violation of provisions of competition laws.
High Court ordered inquiry
Giving this order, Justice PS Dinesh Kumar dismissed the petition of both the companies. The order of the High Court said, “It is expected that there must be some reason behind the order directing the inquiry, which the Commission fulfills.” The court said, “Therefore, in these writ petitions, It would be unwise to consider the issues raised by the petitioners in the IPC without examining them and stopping the investigation at this stage. Therefore, no interference is required in the present order.”
Companies demanding cancellation of inquiry order
Significantly, in January 2020, the CCI had ordered an inquiry against Flipkart and Amazon for adopting other alleged unethical business activities, including giving huge discounts and selling goods in preferential tie-up with certain companies. After this order, the companies had reached the High Court to quash the inquiry order. Although the Karnataka High Court had given an interim stay in the CCI’s inquiry order on 14 February 2020, but after that the CCI reached the Supreme Court where the court asked it to go to the High Court on 26 October 2020.
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