Flipkart, Amazon challenge Karnataka HC order allowing CCI probe

Topics Flipkart | Amazon | CCI

On June 12, the High Court had dismissed Amazon and Flipkart's writ petition, allowing antitrust watchdog CCI to continue with its probe.
E-commerce firms Flipkart and Amazon have filed separate appeals before a division Bench of the Karnataka High Court, challenging a single-judge Bench’s order allowing the Competition Commission of India (CCI) to restart its probe into allegations of anti-competitive behaviour against them. Sources said both appeals are likely to be heard on Friday.

While Amazon India declined to comment on the matter, a message sent to Flipkart did not elicit a response. 

“E-commerce players aim to put together a joint fight and are digging their heels in for a long-drawn battle,” said Salman Waris, partner head of TMT and IP practice at Delhi-based TechLegis Advocates & Solicitors.

According to a Reuters report, the fresh appeal from Flipkart, filed on Wednesday, argues that the decision by the Karnataka HC to allow the probe to resume was erroneous and must be put on hold.

Last week, the high court had dismissed the petitions of Amazon and Flipkart, allowing the CCI to continue with its probe. Reports also said the antitrust watchdog had plans to expedite its investigation into the allegations.


The Confederation of All India Traders said that as expected, both Amazon and Flipkart wanted to evade the investigation. “The speed at which they have rushed to the court to file an appeal itself shows their involvement in illegal and mala fide practices causing harm to small merchants and the Indian economy. However, we are committed to fighting the issue at every level,” said Praveen Khandelwal, secretary general, CAIT.

Last year, the CCI announced a probe against Amazon and Flipkart following a complaint by the Delhi Vyapar Mahasangh (DVM), which represents small and medium business owners in Delhi, accusing the two e-commerce giants of favouring some preferred sellers, hurting small businesses. But the two firms had managed to get a stay on the probe.

“It is common knowledge that foreign e-commerce giants have been taking India as a banana republic where the laws bear no prominence and indulged in blatant manipulation,” said Sonam Chandwani, managing partner at KS Legal & Associates.

“While both companies have categorically denied any wrongdoing, their breach of laws has caused damage to the small traders community in India. Therefore, the giants' challenge to ward off the CCI probe into alleged violations of Competition Law seems to be an attempt to mislead the ED's investigation without robust substantiation,” Chandwani added.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel