Walmart-owned e-commerce giant Flipkart has challenged last week's judgement of the Karnataka High Court allowing the Competition Commission of India (CCI) to restart its probe into allegations of anti-competitive behaviour against the company in a division bench. Flipkart refused to comment on the issue.
According to reports, Amazon India has also challenged the probe.
On June 12, the High Court had dismissed Amazon and Flipkart's writ petition, allowing antitrust watchdog CCI to continue with its probe. Reports said CCI had plans to expedite the probe into the allegations.
“The dismissal of pleas by Amazon and Flipkart against CCI probe was a welcome ruling by Karnataka's HC, however the same has been challenged by Flipkart with Amazon tagging along. 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, the 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 and therefore the giants' challenge to ward off CCI's probe into alleged violations of competition law seems to be an attempt to mislead ED's investigation without robust substantiation,” Chandwani added.
Last year, the CCI announced a probe into Amazon and Flipkart following a complaint filed 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. The two companies had managed to get a stay until now.
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