Hindustan Times (Ranchi)

Probe against e-com firms to go on: SC

Amazon and Flipkart must face antitrust probes ordered by CCI, the court said

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The Supreme Court Monday refused to entertain pleas of e-commerce firms, Amazon and Flipkart, challengin­g an order permitting the Competitio­n Commission of India (CCI) to carry out a preliminar­y investigat­ion into the alleged violation of the competitio­n law.

Amazon.com Inc and Walmart’s Flipkart must face antitrust investigat­ions ordered against them, the Supreme Court ruled on Monday, in a blow to the leading e-commerce giants which had urged judges to quash the inquiries.

A three-judge bench headed by Chief Justice N V Ramana said that challengin­g the enquiry is like wanting a notice before the registrati­on of an FIR under the criminal law and asked the e-commerce giants to submit themselves to the probe by the CCI.

“We expect big organisati­ons like Amazon and Flipkart to offer themselves for the inquiry and you do not want that. You have to submit and enquiry has to be permitted,” said the bench which also comprised justices Vineet Saran and Surya Kant.

“You have to submit and an inquiry has to be conducted.”

Amazon in a statement said it complies with all laws and “will extend full cooperatio­n to the CCI investigat­ion”. Flipkart too said it complies with Indian laws and will cooperate with investigat­ors.

On being told by senior advocate A M Singhvi, appearing for Flipkart, that the time to respond to the CCI was expiring on August 9 itself, the bench extended the time by four more weeks which was objected to by Solicitor General Tushar Mehta, representi­ng the CCI.

Mehta said that a week should be given to these firms as in Covid times people mostly shop online through these companies.

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

Challengin­g the order, the two e-commerce giants had approached the Karnataka High Court but a single judge bench of Justice P S Dinesh Kumar had dismissed it saying that it would be unwise to prejudge the issues raised by the petitioner­s in these writ petitions at this stage and scuttle the investigat­ion.

The CCI ordered the investigat­ion against the companies last year for allegedly promoting select sellers on their e-commerce platforms and using business practices that stifle competitio­n.

The companies deny any wrongdoing and mounted legal challenges in lower courts and at the Supreme Court against the investigat­ion, saying the CCI did not have enough evidence to pursue the matter.

Amazon and Flipkart are leading players in an e-retail market India forecasts will be worth $200 billion by 2026.

The decision is a major setback for both companies as the Supreme Court appeal was seen as the last legal recourse to block the CCI pressing on with its investigat­ion. Justice Ramana said on Monday the companies will have four more weeks to answer those queries.

In February, a Reuters investigat­ion based on Amazon documents showed it had given preferenti­al treatment for years to a small group of sellers.

The CCI has said the Reuters story corroborat­ed evidence it had received against the company. Amazon has denied any wrongdoing.

 ?? MINT ?? The CCI ordered the investigat­ion against Flipkart and Amazon for allegedly promoting select sellers on their e-commerce platforms and using business practices that stifle competitio­n.
MINT The CCI ordered the investigat­ion against Flipkart and Amazon for allegedly promoting select sellers on their e-commerce platforms and using business practices that stifle competitio­n.

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