In a critical hearing scheduled for Monday, a Supreme Court bench headed by Justice Abhay S. Oka and Justice Manmohan will take up the Competition Commission of India’s (CCI) plea to consolidate over 20 writ petitions filed by resellers of Amazon and Flipkart across various High Courts. These petitions challenge the CCI’s ongoing investigation into alleged anti-competitive practices by the e-commerce giants.

The CCI’s transfer petition seeks to centralise all these cases in the Karnataka High Court, arguing that consolidation is essential to prevent conflicting judgments and ensure a uniform adjudication process. The Supreme Court had previously stayed proceedings in the Karnataka High Court on similar petitions, which were scheduled for a hearing last month.

The core issue

The controversy stems from a 2019 CCI investigation into allegations that Amazon and Flipkart provided preferential treatment to select sellers, thereby distorting competition in India’s e-commerce market. The CCI’s investigative unit concluded earlier this year that both companies violated antitrust laws. Additionally, the report highlighted collusion with smartphone manufacturers like Samsung and Vivo for exclusive online launches, raising concerns over restricted market access.

Legal pushback

Vendors affiliated with Amazon and Flipkart have mounted a legal defence, filing petitions in at least five High Courts, alleging procedural lapses by the CCI and challenging the validity of its findings. The CCI, however, has countered these claims, stating that such legal challenges are attempts to derail the investigation and delay regulatory scrutiny.

Supreme Court’s role

The Apex Court has recognised the importance of consolidating these cases to ensure an efficient and coherent judicial process. Legal experts believe Monday’s hearing will be pivotal in determining whether all related cases will be transferred to the Karnataka High Court for a unified resolution. 

If approved, this move could significantly expedite the proceedings and provide much-needed clarity on the allegations of anti-competitive practices.

The stakes

The outcome of the hearing will have far-reaching implications for India’s e-commerce sector, which is already under intense regulatory and public scrutiny. A consolidated hearing could strengthen the CCI’s ability to enforce its mandate of market fairness, while also providing resellers with a structured platform to address their grievances.

With the matter set to be heard Monday, all eyes will be on the Supreme Court as it decides the course of further action in one of the most high-profile antitrust cases in India’s history, economy watchers said.

Published on January 5, 2025