Karnataka HC dismisses Amazon-Flipkart’s plea against CCI probe

Team Udayavani, Jul 23, 2021, 2:17 PM IST

Bengaluru: Karnataka High Court on Friday dismissed Amazon and Flipkart’s petition challenging a probe ordered by the Competition Commission of India (CCI) against them for alleged anti-competitive practices.

“Not finding any reason to interfere in the order of the tribunal and therefore the petition is dismissed,” Justice Satish Chandra Sharma and Justice Nataraj Rangaswamy remarked.

Reacting to the order, An Amazon spokesperson said, “We respect the judgment passed by the honorable high court and we will review the judgment in detail to determine any next steps”

Flipkart Group spokesperson said. “We are awaiting to receive a copy of the order of the division bench of the Karnataka High Court and will review it as soon as we get it. As highlighted earlier, we have very robust compliance and governance process and remain in full compliance with Indian laws. We will do everything to be always compliant”

The Competition Commission of India (CCI) had launched a probe in January 2020 against both the firms following a complaint that the firms promote “preferred sellers” of goods on their platforms, which may have hurt smaller rivals.

The Delhi Vyapar Mahasangh (DVM), a group representing small and medium business owners in the national capital had submitted the plea.

DVM raised the issue of exclusive smartphone launches on these platforms in violation of the Indian rules for marketplaces.

This order was challenged by Amazon through a writ petition in the Karnataka High Court in February 2020.

However, on Jun 11, 2021, the Karnataka High Court dismissed pleas by Amazon and Flipkart to quash an antitrust investigation against them. The order was pronounced by Justice PS Dinesh Kumar.

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