Image Credit: The Financial Express
Walmart-owned Flipkart has challenged the last week’s judgement of the Karnataka high court allowing the Competition Commission of India (CCI) to continue its investigation against the corporate during a division bench. Amazon’s counsel also asked for his interest be tagged along side Flipkart’s appeal. The request has been accepted.
“This is urgent for them otherwise CCI can take action against them. they have a stay order to halt the investigation. The request for the matter is to be heard tomorrow,” said an individual aware about the event.
On June 11, the Karnataka High court dismissed the writ petition of Amazon and Flipkart thus allowing the CCI to continue with its probe.
The issue started almost 18 months ago when the Delhi Vyapar Mahasangh (DVM), a gaggle representing small and medium business owners within the capital , submitted a plea with CCI against the country’s two biggest e-commerce players, accusing them of anti-competitive practices, predatory pricing and preferential treatment of sellers among others.
The CCI passed an order in January 2020 supported the knowledge submitted by DVM under Section 3, directing the director-general to conduct a search . This order was challenged by Amazon through a writ petition within the Karnataka High court in February 2020. The High court put the CCI’s investigation on hold an equivalent month.
Meanwhile, the Confederation of All India Traders (CAIT) said it’s able to contest the petition within the court. “Undoubtedly we are getting to contest it. We are just expecting the copy of the petition. we’ll undergo the contents to ascertain on what grounds have they filed it,” said Praveen Khandelwal, National Secretary General of CAIT.
Amazon has mounted an identical challenge, two sources conversant in the matter said. Both are likely to be heard by a two-judge panel in the week , sources said. Flipkart and CCI didn’t immediately answer Reuters’ requests for comment. Amazon declined to discuss its appeal.
Sources told Reuters in the week that the CCI planned to hurry up the investigation because it increases its scrutiny of big-tech firms. The CCI plans to demand information from Flipkart and Amazon on the accusations “as quickly as possible”, one source said. Such investigations usually run several months.
Flipkart’s counsel in its petition told the court that “Irreparable injury are going to be caused” to the corporate if the investigation was to continue pending this appeal. “This may be a fit case of grant of interim relief and stay the impugned order, as long as there has been a stay the CCI order since 16 months and no prejudice are going to be caused if the investigation continues to stay stayed,” the petition reads.
In September 2020, CCI challenged the interim order within the High Court. Justice Nageswara Rao sent the case back to the Hiigh court , saying the case be heard as soon as possible in October 2020. After months of hearings, the Karnataka High court had passed its judgement within the favour of CCI.