Vendors’ Body Files Caveat In SC As CCI Urged To Reopen Probe Into Flipkart

Vendors’ Body Files Caveat In SC As CCI Urged To Reopen Probe Into Flipkart

SUMMARY

AIOVA on Saturday has filed a caveat in the Supreme Court

Last week, NCLAT had directed CCI to reopen its investigation into the dominant position of Flipkart

AIOVA anticipates Flipkart will file a case due to this investigation by NCLAT

Vendors’ body All India Online Vendors Association (AIOVA) filed a caveat in the Supreme Court last week as it anticipates Flipkart’s challenge to the National Company Law Appellate Tribunal (NCLAT) order to the Competition Commission of India (CCI) to reopen its antitrust probe into Flipkart.

Last week, NCLAT had urged the CCI to reopen the case looking into whether the ecommerce major had misused its dominant position in the market to create an anti-competitive atmosphere. In November 2018, CCI had noted that Flipkart and its competitor Amazon are not violating competition norms which are affecting the business of other players and traders. The CCI had ruled that no single player in the market had held a dominant position given the maturity of the Indian market at that stage.

However, unsatisfied with the response, NCLAT has sought reassessment of the dominant position abuse by Flipkart. NCLAT has directed CCI’s probe arm Director General (DG) to investigate the allegations made by All India Online Vendors Association (AIOVA).

The traders’ body had alleged that Flipkart India Pvt Ltd and Flipkart Internet Pvt Ltd are abusing their dominant position in the market by indulging in “unfair and discriminatory” practices such as giving sellers goods that are controlled by it at a discounted price.

Hence, AIOVA has filed a caveat. To put this in context, a caveat is a notice submitted in anticipation by a person or an entity, informing the court that another person or entity may file a lawsuit or application against them and that the court should give the caveator a fair hearing before deciding on the matter brought in front of the court.

It is to be noted that traders’ organisations across the country have been taking the case of Flipkart and Amazon claiming market dominance and predatory pricing etc. The CCI had earlier ordered a probe on a complaint filed by Delhi Vyapar Mahasangh, which alleged that Amazon and Flipkart give preferential treatment to select sellers and offer deep discounting as well.

The association emphasised that such practices were creating an anti-competitive environment, giving the ecommerce players an unfair advantage. CCI alleged that the two companies are involved in unethical practices in violation of the competition law.

Soon, reports also surfaced that CCI failed to find any evidence proving that Amazon and Flipkart had exclusive deals with smartphone manufacturers. The judge pointed out that “in paragraphs No. 22 and 23 (of the CCI order) that there ‘appears’ to be an exclusive partnership between smartphone manufacturers and ecommerce platforms. This finding is based on allegations made in the complaint.”

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Vendors’ Body Files Caveat In SC As CCI Urged To Reopen Probe Into Flipkart-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Vendors’ Body Files Caveat In SC As CCI Urged To Reopen Probe Into Flipkart-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Vendors’ Body Files Caveat In SC As CCI Urged To Reopen Probe Into Flipkart-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Vendors’ Body Files Caveat In SC As CCI Urged To Reopen Probe Into Flipkart-Inc42 Media
Vendors’ Body Files Caveat In SC As CCI Urged To Reopen Probe Into Flipkart-Inc42 Media
You’re in Good company