Walmart-owned Flipkart has moved Supreme Court against Karnataka High Court decision to allow an antitrust probe into the e-commerce firm and its rival Amazon to continue, news agency Reuters reported citing three sources. The Karnataka High Court last week dismissed the ecommerce giants’ plea which sought to quash a probe ordered by the Competition Commission of India against the two companies for alleged violations of provisions of competition laws.
Further deatils of the challenge were not immediately clear. The SC website showed Flipkart had filed a case against the CCI and other parties, without revealing further details, Reuters added. Amazon could also file an appeal against the HC ruling, according to the people familiar with the matter.
CCI had ordered the probe in January last year, saying it had “prima facie” evidence to begin an investigation under Section 26 (1) of the Competition Act, 2002. following which both the companies had moved the High Court seeking quashing of the probe order.
The issue dates back to October 2019 when the Delhi Vyapar Mahasangh (DVM), a group representing small and medium business owners in the national capital, submitted a plea with CCI against Amazon and Flipkart accusing them of anti-competitive practices, predatory pricing and preferential treatment of sellers among others.
The CCI probe is yet another big hurdle for the ecommerce giants which are already grappling with prospects of tougher e-commerce regulations and accusations by from brick-and-mortar retailers that the companies circumvent Indian law by creating complex business structures.