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Amazon and Flipkart have lost their legal challenge over a CCI probe into their alleged anti-competitive agreements. A Division Bench of the High Court of Karnataka on Friday upheld the Competition Commission of India’s decision to investigate, through its Director-General, whether the e-commerce majors had violated provisions of the Competition Act, 2002.
Observing that the CCI enquiry cannot be quashed at the initial stage, the Division Bench described the approach of the e-commerce majors as “an attempt to ensure that the enquiry does not attain finality.”
The Bench, comprising Justices Satish Chandra Sharma and Nataraj Rangaswamy, delivered the verdict upholding the June 11 ruling of a single judge, who too had upheld the CCI’s decision. Amazon and Flipkart had appealed against the order of the single judge Bench.
If the appellants are not involved in violation of any provisions of the Act of 2002, they should not feel shy in facing inquiry by the CCI, the two judge Bench observed.
The CCI had acted on a complaint by the Delhi Vyapar Mahasangh (DVM), which had alleged that Amazon and Flipkart were giving preference to select sellers and offering deep discounts by indulging in anti-competitive agreements.
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