The Competition Commission of India (CCI) has petitioned the Supreme Court to consolidate and expedite legal challenges to its antitrust investigation of Amazon and Walmart’s Flipkart. The CCI alleges these challenges, filed in various high courts by companies like Samsung and Vivo, aim to obstruct the ongoing probe.
The CCI’s December 3rd filing, reviewed by Reuters, requests the Supreme Court to hear 23 separate challenges. These lawsuits, brought by vendors associated with Amazon and Flipkart, as well as smartphone manufacturers Samsung and Vivo, contest the investigation’s legality. The CCI argues that allowing these disparate lawsuits to proceed would hinder the Director General’s ability to conduct a thorough and efficient investigation. A swift resolution by the Supreme Court is crucial for the timely completion of the antitrust probe.
This investigation poses a significant regulatory hurdle for Amazon and Flipkart in India’s rapidly expanding e-commerce market. Projected to surpass $160 billion by 2028, the sector’s current value is estimated between $57 billion and $60 billion. The CCI’s investigation unit concluded in August that both Amazon and Flipkart violated antitrust laws by favoring specific sellers on their platforms. The unit also found that smartphone companies like Samsung and Vivo colluded with the e-commerce giants for exclusive online product launches, further breaching regulations.
For years, smaller retailers have accused Amazon and Flipkart of employing unfair business practices, citing deep discounts and preferential treatment as detrimental to their businesses. Both Amazon and Flipkart deny any wrongdoing. A 2021 Reuters investigation, based on internal Amazon documents, revealed that the company had provided preferential treatment to a select group of sellers, potentially circumventing Indian laws. Initiated in 2020, the current CCI investigation has faced numerous delays.
The majority of the 23 lawsuits challenging the investigation allege procedural irregularities by the CCI. These cases, spread across five Indian high courts, argue that the CCI failed to adhere to due process during its investigation. A lawyer familiar with the matter expects the Supreme Court to hear the CCI’s plea for consolidation this week. The outcome of this legal battle will significantly impact the future of e-commerce regulation in India.
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The consolidation of these cases in the Supreme Court could streamline the legal process and potentially accelerate a final decision on the antitrust investigation. The outcome will have far-reaching implications for the Indian e-commerce landscape and the competitive dynamics between major players and smaller retailers. This high-stakes legal battle underscores the growing scrutiny of Big Tech companies and their practices in key global markets.
