Amazon, Flipkart Vs CCI: SC In Favour Of Transferring Pleas To K’taka HC

Hearing the Competition Commission of India’s (CCI) plea to transfer all pleas filed by Amazon and Flipkart sellers against it to one court, the Supreme Court on Monday (December 16) observed that prima facie all the cases should be handled by the Karnataka High Court.

The bench of justices AS Oka and Manmohan was hearing the competition watchdog’s plea to transfer 24 writ petitions to either a single High Court or the top court to expedite the process, according to a report by Bar and Bench. Currently, these petitions have been filed in high courts of Delhi, Punjab & Haryana, Karnataka, Allahabad, among others.  

“Parties which are represented today take notice. We permit petitioners to add parties. Amended cause title shall be filed in two days. Notices are made returnable on January 6. In the meanwhile, the writ petitions which are heard by Karnataka HC shall not proceed. Prima facie we are of the view that all cases pending across should be transferred to Karnataka High Court,” the court’s order dated December 16 read according to the publication.

Attorney general R Venkataramani and additional solicitor general N Venkataraman, who represented the CCI, said that they don’t have an objection to the transfer of the cases to the Karnataka HC.

In their response, Amazon’s counsel said that some parties have not been added as respondents to the case. The court, thus, refrained from giving an official order on the issue till all the parties have been heard out. The SC will rehear the matter on January 6.  

Earlier this year, the CCI found Amazon and Flipkart in violation of the competition laws by giving preference to only some sellers on their platforms. 

In its report on Amazon, the CCI said that preference is being given to specific sellers on the ecommerce platform which ultimately results in grabbing customer’s “attention” towards their products more effectively. With regards to Flipkart, it said that preferred sellers were provided various services such as marketing and delivery at a “miniscule cost”. 

Earlier last week, proxy advisory services provider InGovern said that the CCI’s move seeking consolidation of pleas will negate all the time and work done at the various courts. especially the Karnataka High Court, where the hearing is at advanced stages.

“By bypassing state high courts, the CCI risks making them appear redundant and undermining stakeholder confidence in legal processes. Investors appreciate the robust provisions of the Competition Act and this single act of CCI could become a deterrent for investors to invest in India,” Shriram Subramanian, founder of InGovern Research Services, said.