CCI approaches Supreme Court to revive investigation against Amazon, Flipkart

CCI approaches Supreme Court to revive investigation against Amazon, Flipkart
Photo Credit: VCCircle
6 Oct, 2020

The Competition Commission of India (CCI) has filed an appeal with the Supreme Court to present subsequent facts on the investigation against ecommerce platforms Amazon and Flipkart for violation of competition laws. 

The competition watchdog filed a special leave petition with the apex court on September 21.

CCI initiated an investigation against Amazon and Flipkart on January 13 based on a complaint filed by traders body, Delhi Vyapar Mahasangh, which alleged malpractices by the platforms violating Foreign Direct Investment norms. 

Amazon had challenged the investigation by filing a writ petition in Karnataka High Court in February, terming it ‘arbitrary and untenable’. Subsequently, it was awarded interim relief by the High Court, stating that FDI violations came under the purview of Enforcement Directorate (ED) and a report from the ED on ongoing investigations against ecommerce players was awaited. 

“The appeal by CCI is one of the most logical and awaited step to nail both Amazon and Flipkart for continuing their respective malpractices including predatory pricing, deep discounting, loss finding, exclusive arrangement with brands and holding inventory,” Praveen Khandelwal, secretary general of Confederation of All India Traders, a traders body said in a statement. 

CCI also directed a fresh investigation into the business practices of Walmart backed Flipkart in March based on a complaint made by online sellers body, All India Online Vendors Association (AIOVA). 

AIOVA alleged discriminatory practices by Flipkart under the Competition Act.