CCI seeks SC intervention to streamline Amazon, Flipkart antitrust cases
New Delhi, Nov 14, 2024
As multiple high court cases delay its probe, the CCI now considers a Supreme Court petition to merge antitrust cases against Amazon, Flipkart, and certain other platform sellers
The Competition Commission of India (CCI) is considering moving the Supreme Court to consolidate multiple writ petitions related to an antitrust investigation involving e-commerce giants Amazon, Flipkart, and certain sellers on their platforms, according to a report by Mint.
Sellers have filed over a dozen petitions across various high courts, including those in Karnataka, Telangana, Madras, and Kolkata, alleging procedural irregularities in a CCI report that suggests the platforms may favour specific sellers, the report said.
These filings have stalled the CCI’s investigation, prompting the Commission to seek legal advice on filing a transfer petition to the top court to unify the cases.
Consolidating cases for swift resolution
The report quoted legal experts as saying that CCI’s potential transfer petition to the Supreme Court could streamline the process, allowing the Commission to address the various issues raised by sellers in a single forum.
Allegations of preferential treatment in e-commerce
In August, the CCI’s Director General of Investigation (DGI) released a report highlighting possible competition law violations by Amazon and Flipkart. The report cites concerns about exclusive product launches, deep discounting, and preferential treatment of certain sellers.
Some sellers, initially asked for information as third parties, were later categorised as opposing parties, allegedly without required CCI approval. Appario Retail Pvt Ltd, one of these sellers, has challenged this reclassification in the Karnataka High Court.
High Court stay order
On September 27, the Karnataka High Court granted a temporary stay on CCI’s proceedings after hearing several sellers’ petitions, with the next hearing set for November 20. The CCI and the involved e-commerce companies have not yet commented publicly on the ongoing case.
Future of antitrust enforcement
Antitrust cases often face intense litigation due to high stakes, said Samir R Gandhi, co-founder of Axiom 5 Law Chambers, as mentioned by the report. He said that with the CCI’s recent introduction of settlement and commitment mechanisms, there may be increased potential for resolving such cases without prolonged litigation.
CCI oversight
With e-commerce reshaping Indian retail, the CCI has increased its oversight of these platforms. Conventional retailers continue to call for vigilance against anti-competitive practices, and in 2020, the apex court required e-commerce platforms to comply with a CCI investigation launched that year. The findings of this probe, finalised in August, have led to the current legal standoff.
[The Business Standard]
