Bengaluru: The Karnataka High Court on Friday granted interim stay on a probe initiated by the Competition Commission of India (CCI) against e-commerce majors Amazon and Flipkart over allegations of predatory pricing.
The interim order comes as a relief for billionaire Jeff Bezos-led Amazon and Walmart-owned Flipkart that had come under scrutiny over allegations of offering deep discounts, preferred listings, promotion of private labels and exclusive partnerships with phone brands.
The antitrust body, Competition Commission of India (CCI), had ordered a probe into Amazon and Flipkart after it received a complaint from the Delhi Vyapar Mahasangha (DVM).
Amazon’s India unit filed the writ petition on Monday seeking a stay on the probe ordered by the CCI for alleged violations of competition law.
This order may not have a bearing on other investigations against either of the companies, people aware of the developments said.
The CCI initiated a probe based on a complaint from the informant who cited text messages on sales of mobile phones on Amazon and Flipkart to allege a partnership between phone makers and the online platforms.
The informant also alleged the existence of ‘vertical arrangements between Flipkart and its preferred sellers as well as Amazon and its preferred sellers “which leads to a foreclosure of other non-preferred sellers from the online marketplace." These preferred sellers were also “affiliated with or controlled by Flipkart/Amazon either directly or indirectly", the informant added.
In order to initiate a probe, CCI cited the allegations that include that “offline retailers are forced to purchase smartphones either from manufacturers’ e-stores or from the platforms e-portals".
