Nod to CCI probe on Amazon, Flipkart

BENGALURU: The Competition Commision of India has finally received nod from the Supreme Court to continue its probe into the business models of e-commerce giants Amazon and Flipkart, thus putting an end to the months-long legal tussle between the regulator and the e-tailers.

The apex court while dismissing the petitions filed by the Amazon and Flipkart, on Monday, has given the companies four weeks time to respond to a notice by the CCI. “It is made clear that no further extension of time would be granted for the purpose,” the SC said in its order, a copy of which was seen by The New Indian Express.

“There is no reason to interfere in the Karnataka High Court order. Large companies like Amazon, Flipkart should in fact be open to such inquiries. These are big organisations, they have to volunteer for inquiry and all. And you want no inquiry?” the Chief Justice of India, Nuthalapathi Venkata Ramana, said during the proceedings.

The e-tailers told The New Indian Express in separate statements that they will cooperate with the CCI investigations. “Amazon has a high bar on compliance and we comply with all applicable laws. We will extend full cooperation to the CCI investigation,” an Amazon spokesperson said. 

Flipkart said that while the company hasn’t received the order yet, it respects the decision of the Supreme Court. “We are in compliance with applicable Indian laws and will cooperate with the investigation,” Flipkart said.

The Confederation of All India Traders, whose affiliate , Delhi Vyapar Mahasangh, has petitioned before the CCI termed the SC verdict as a milestone and said that it hasn’t given any scope to Amazon, Flipkart to avoid probe.

Narayana Murthy and Amazon’s JV to cease ops 

Infosys founder Narayana Murthy’s family office Catamaran Ventures and Amazon’s joint venture Cloudtail will cease its operations from May 2022. Cloudtail India, the largest seller on Amazon marketplace, is a wholly-owned subsidiary of Prione Business Services. Catamaran Ventures had increased its stake in the JV from 51% to 76% in 2019 whereas Amazon reduced its stake to 24% from 49% in 2019 to comply with the FDI rules. But high stakes in seller firms and common board of directors had invited criticism