Robe against e-com firms to go on: SC
Azon and Flipkart st face antitrust bes ordered by , the court said
The Supreme Court day refused to entertain s of e-commerce firms, zon and Flipkart, challengan order permitting the petition Commission of (CCI) to carry out a prelimy investigation into the ed violation of the competilaw. mazon.com Inc and Wal’s Flipkart must face antit investigations ordered st them, the Supreme Court d on Monday, in a blow to eading e-commerce giants h had urged judges to quash nquiries. three-judge bench headed hief Justice N V Ramana that challenging the enquiry e wanting a notice before egistration of an FIR under riminal law and asked the 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.