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Delhi High Court agrees to hear Cloudtail's challenge against CCI raids on July 15

Cloudtail questioned raids on its premises on the ground that it is not named as a party in the probe order. CCI said Cloudtail's status as an alleged preferred seller on Amazon is being probed.

June 08, 2022 / 08:51 PM IST
Image: Reuters

Image: Reuters

The Delhi High Court has agreed to hear Cloudtail's challenge to the raids conducted on its premises by the Competition Commission of India (CCI) as part of the competition watchdog's probe against e-commerce giants Amazon and Flipkart.

In an order passed on June 3, the high court said that the matter requires consideration and in the interim directed the Director-General of the CCI to ensure that the details pertaining to the search and seizure exercise conducted against Cloudtail are not divulged to any third party or made public.

Cloudtail, which used to be a significantly large seller on Amazon, moved the high court challenging the CCI's action against it, on the grounds that it is not a named party in the case for which the investigation is conducted. Cloudtail argued before the court that even the CCI names it as a third party in the case and as such, raids cannot be conducted against the company.

The petition pertains to the raids conducted by CCI at end of April reportedly to ascertain financial interests or linkages, if any, between the online marketplace platforms and the sellers.