Setback for Amazon, Flipkart; SC refuses to halt CCI antitrust probe

In a huge setback to e-commerce giants Amazon and Flipkart, the Supreme Court (SC) on Monday granted them four weeks to join the Competition Commission of India's (CCI) probe. 

Declining to interfere with the CCI probe, the three-judge SC bench also refused to stay the investigation by the anti-competitive commission for alleged predatory practices and law violations. The SC observed that big organisations like Amazon and Flipkart should come forward for an enquiry.

The CCI had ordered a probe in 2020 against the e-tailers for allegedly promoting select sellers on their platforms as well as using business practices that stifle competition.

Also Read: Karnataka HC dismisses cases filed by Amazon, Flipkart against CCI's antitrust probe

The companies, however, deny any wrongdoing and have repeatedly tried to mount legal challenges against the CCI probe.
Last month, the Karnataka High Court (HC) had dismissed the cases filed by Amazon and Flipkart seeking to quash the CCI's 2020 investigation.

The companies had denied any wrongdoing, but the court said the petitioners have no need to shy away from an inquiry if they were not involved in violations.

Following this, Flipkart then filed an appeal in the SC, challenging Karnataka HC's decision.

Also Read: Flipkart says CCI probe shouldn't treat it the same as Amazon

The CCI's January 2020 probe order followed a complaint by Delhi Vyapar Mahasangh, whose members comprise many traders dealing in smartphones and related accessories.

On January 13, 2020, fair trade regulator CCI ordered a probe against Flipkart and Amazon for alleged malpractices, including deep discounting and tie-ups with preferred sellers on their platforms, following which both the companies had moved the high court seeking quashing of the probe order.