New Delhi: Three sellers who are enrolled with Walmart-backed Flipkart have sued the Competition Commission of India (CCI) over its probe into -commerce platforms’ practices which found Amazon and Flipkart to be in non-compliance with competition laws, according to court filings.
The CCI investigation found Flipkart, Amazon and certain smartphone brands in violation of anti-competitive practices alleging that overt preference was given to certain brands over others. The CCI also found preferential listings which were again in violation of competition laws, Reuters reported, citing court documents.
The three sellers mentioned above filed a suit against CCI’s report in the Karnataka High Court, seeking a hold on the anti-competition regulator’s action and for the report to be set aside, Reuters reported.
Flipkart sellers CIGFIL Retail, Wishery Online and Xonique Ventures filed a case against the CCI alleging that they were initially asked to submit data by the regulator. However, they were later named as accused in the report. The three sellers called the probe “arbitrarily opaque and unfair,” Reuters reported, citing court documents.
Earlier, an Amazon seller sued the CCI seeking an injunction on the probe on grounds that they were not informed before being named accused in the investigation. The court granted this demand.
What is CCI’s report about?
The CCI began its probe in 2021 following complaints made by all India retailers’ body, the Confederation of All India Traders (CAIT), alleging anticompetitive practices by Flipkart and Amazon. However, the 2 e-commerce giants refused any wrongdoing.
Earlier this month, the CCI shared plans of expanding the scope of its probe into Amazon and Flipkart. The CCI probed allegations of in-house brand promotion and deep discounting, among others, against the US-based retail giants. Pleas filed by Flipkart and Amazon against the CCI probe were not touched by the courts, allowing CCI to continue with its investigation. The inquiry found that Amazon and Flipkart were not showing neutrality and instead establishing market dominance, the Financial Express reported, citing officials.
Anti-competition regulator CCI has been sued by three sellers enrolled with Flipkart over its probe into alleged anti-competitive practices followed by the e-commerce giant. A similar plea seeking an injunction against the CCI’s action on the report was filed by an Amazon seller last week. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
