CCI Urges SC To Consolidate Cases Of Amazon, Flipkart Sellers

SUMMARY

CCI has reportedly moved to the Supreme Court, seeking consolidation of multiple proceedings filed by at least 20 Amazon and Flipkart sellers across six high courts

CCI told the apex court that these proceedings disrupt its investigation and could lead to delays benefiting violators at the expense of market competition and consumers

The regulator also noted that non-confidential portions of the investigation report have been shared, allowing parties to raise objections directly with the commission

The Competition Commission of India (CCI) has reportedly moved to the Supreme Court, seeking consolidation of multiple proceedings filed by at least 20 Amazon and Flipkart sellers across six high courts.

According to an NDTV Profit report, the CCI told the apex court that these proceedings disrupt its investigation and could lead to delays benefiting violators at the expense of market competition and consumers.

This comes after ecommerce sellers filed multiple petitions post the antitrust investigation into Amazon and Flipkart by CCI.

According to the report, the document notes that cases filed before different high courts are an “attempt to scuttle the well-established procedure of investigation laid down under the Act.”

The regulator also noted that non-confidential portions of the investigation report have been shared, allowing parties to raise objections directly with the commission.

The watchdog also warned that restricting its inquiry to pre-identified parties would limit its ability to act on evidence, undermining the Competition Act.

Further, the plea seeks to consolidate the cases under the Supreme Court or the Delhi High Court for efficient resolution.

The probe examines allegations that ecommerce firms gave preferential treatment to sellers such as Cloudtail India, Appario Retail, Samsung India, and Vivo Mobile, violating competition laws.

Earlier this year, CCI reportedly sought turnover details from Amazon and Flipkart to determine the penalty for flouting antitrust norms.

Notably, the ecommerce giants are facing a penalty of up to 10% of their global annual turnover or income.

Meanwhile, in August, union minister Piyush Goyal questioned Amazon’s business practices, particularly its “predatory pricing policies,” suggesting that the exponential growth of ecommerce firms in India could be a “matter of concern.”

The Ministry of Corporate Affairs has also proposed a draft digital competition bill aimed at regulating major entities based on factors including turnover, gross merchandise value, global market capitalisation, and user numbers, to crack down on alleged anti-competitive practices by big tech companies.