Karnataka High Court dismisses Amazon-Flipkart's plea against CCI investigation

In a blow to US-based Amazon and Walmart-owned Flipkart, a division bench of the Karnataka High Court on July 23 dismissed their petition challenging a probe ordered by the Competition Commission of India (CII) against the two companies for alleged anti-competitive practices.

The petition by the two companies was "devoid of merits and substance", Justice Satish Chandra Sharma and Justice Nataraj Rangaswamy said, a decision that will have a bearing on the larger e-commerce ecosystem of India.

"Not finding any reason to interfere in the order of the tribunal and therefore the petition is dismissed," said the judges.

DVM filed the complaints under Sections 3 and 4 of the Competition Act. The CCI in January 2020 directing the director-general to conduct a probe.

This order was challenged by Amazon through a writ petition in the Karnataka High Court in February 2020. The high court put the CCI’s investigation on hold the same month.

After months of hearing, Justice PS Dinesh Kumar dismissed the writ petition on June 11, 2021.

Also read: India e-commerce rules cast cloud over Amazon, Walmart and local rivals

"It fully vindicates the stand of CAIT that Amazon and Flipkart business model is entirely based on violating the FDI policy, rules and other laws, mischievous business practices, therefore, without wasting any more time, the CCI should immediately begin its probe," said B.C.Bhartia, National President and Praveen Khandelwal, Secretary General of the Confederation of All India Traders (CAIT).