CCI to speed up probe in Amazon, FK case
NEW DELHI: The Competition Commission of India (CCI) plans to expedite a restarted probe into allegations of anti-competitive behaviour at Amazon.com Inc and Walmart Inc’s Flipkart, as it intensifies scrutiny of bigtech firms, two people close to the matter said.
The comments come as major US technology firms are at loggerheads with the government over issues such as data privacy bills and policies some industry executives have called protectionist.
The CCI initiated a probe in January last year on the basis of a complaint alleging Amazon and Flipkart promoted select sellers on their e-commerce platforms and that deep discounts stifled competition.
The firms have denied wrongdoing.
Near-immediate legal challenges from the pair stalled the probe for over a year until a court last week allowed it to resume, having dismissed arguments that the CCI lacked evidence.
Though Amazon and Flipkart are likely to appeal, the CCI plans to demand information from them related to the allegations “as quickly as possible”, said one of the people, who declined to be identified due to the sensitivity of the matter.
The investigation “will be expedited”, the person said. Such investigations in India typically take months to complete.
Amazon declined to comment. Flipkart and the CCI did not respond to requests for comment. The CCI is speeding up all cases involving big technology firms, including by deploying additional officers for some cases and working to more stringent internal deadlines, said the two people, who are familiar with the watchdog’s thinking.
“Cases involving digital firms are getting a priority at CCI as they can have significant impact on the economy and Indian startups,” said one of the people.
Last year, the CCI began reviewing allegations of Google abusing the position of its Android operating system in the smart TV market, and is likely to soon order a comprehensive antitrust investigation, the people said.
Google declined to comment. The CCI is also investigating practices at MakeMyTrip Ltd and privacy policy changes at Facebook’s WhatsApp.
The probe into Amazon and Flipkart is restarting at a time when both are battling accusations from offline retailers that their complex business structures allow them to circumvent foreign investment rules for e-commerce.
In February, a Reuters investigation based on Amazon documents showed the e-tailer for years gave preferential treatment to a small group of sellers on its Indian platform. While arguing to restart the probe, the CCI told a court in Karnataka state that the Reuters report corroborated the evidence.