CCI’s Antitrust Probe on Amazon, Flipkart: SC Transfers All Petitions to Karnataka HC

The Supreme Court on Monday transferred all petitions challenging the Competition Commission of India’s (CCI) probe against ecommerce giants Amazon and Flipkart for anti-competitive practices to the KarnatHigh Courtourt.

The order passed by a Division Bench of the Supreme Court comprising Hon’ble Justice Abhay S. Oka and Hon’ble Justice Ujjal Bhuyan urged the Karnataka High Court to decide the matter expeditiously.

Also Read: Supreme Court To Hear CCI's Plea To Transfer Amazon, Flipkart’s Cases to a Single Court

The decision comes after CCI’s plea to consolidate over 20 writ petitions filed by e-retailers of Amazon and Flipkart in various High Courts, including Delhi, Madras, Punjab, and Haryana to prevent delays in the antitrust probe. The CCI sought directions to transfer the pending cases either to the Supreme Court or Delhi High Court.

The court directed that all related pending petitions before high courts be transferred and heard collectively by the single judge handling the matter at the Karnataka High Court preferably at the principal bench in Bengaluru.

This move aims to streamline the judgment process, prevent conflicting judgments, and ensure a uniform resolution of legal queries surrounding the investigation

Also Read: CCI Orders Probe into Google Over Winzo's Complaint of Unfair Practices

The Background

In 2020, the CCI had launched an investigation to examine alleged anti-competitive practices by Amazon and Flipkart such as favoring select e-retailers, hampering competition in India’s e-commerce market.

The CCI investigation found that the e-commerce giants violated antitrust laws by colluding with certain e-retailers and smartphone manufacturers for exclusive online launches, thus restricting market access.

Retailers affiliated with Amazon and Flipkart filed multiple petitions in various High Courts, opposing the CCI’s conclusion. These petitions pointed to the faulty procedure of the investigation and questioned the credibility of its findings.

In response, CCI asserted that filing multiple petitions are just tactics to derail the probe and avoid accountability for anti-competitive practices.

Case Significance

Some of the e-retailers, who are facing the probe, were involved in the recent raids conducted by the Enforcement Directorate (ED). These retailers are part of a separate investigation opened by ED under the Foreign Exchange Management Act (FEMA).

Foreign-owned ecommerce giants like Amazon and Flipkart are violating restrictions on foreign ownership in the retail sector by indirectly controlling e-retailers on their platforms. The ED claims that the e-commerce platforms bypassed the rules by exercising indirect control over their preferred e-retailers.