After Amazon, Three Flipkart Sellers Sue CCI

Three Flipkart sellers have reportedly approached the Karnataka High Court, seeking to halt an ongoing investigation by the Competition Commission of India (CCI) that implicated them. 

The sellers – CIGFIL Retail, Wishery Online, and Xonique Ventures – have filed separate petitions to “set aside” a CCI report which found them guilty of violating competition laws and called for temporarily halting the proceedings, Reuters reported.

It is pertinent to note that the CCI recently found Flipkart, Amazon, some of their sellers, and some smartphone brands in violation of India’s competition laws.

The Flipkart sellers have argued before the HC that they were called upon to provide data to aid officials during the investigation. However, they were later named as accused parties without adequate notice, in violation of the due process.  

They have described the investigation as “arbitrary, opaque, and unfair” in their filings.

Earlier this week, former Amazon seller Appario also moved the Karnataka HC seeking to quash the CCI probe against Amazon.

Appario was once one of the largest sellers on Amazon India. It was a joint venture between Amazon and Patni Group’s Zodiac Wealth Management. In July, the CCI approved the sale of Appario Retail to Clicktech, another seller on Amazon’s platform.

Both Flipkart and Amazon are facing a penalty of up to 10% of their global annual turnover or income for violating the competition laws. Earlier, the CCI sought turnover details from both the ecommerce giants to determine the penalty on them. 

The latest development comes a day after a Madras High Court lawyer wrote to DPIIT Secretary Amardeep Singh Bhalla, accusing Flipkart of anti-competitive behavior. The lawyer alleged that Flipkart has been providing selective waivers at the product level for certain sellers.

This adds to the long list of regulatory issues being faced by Flipkart, Amazon, and other big tech giants such as Google and Meta in India. The proposed draft digital competition bill is aimed at reining in the alleged anti-competitive practices of the big tech companies in India.