In a huge setback to e-commerce giants the Supreme Court on Monday refused to halt an inquiry into Amazon and Flipkart’s business practices, rejecting their demands to pause a Competition Commission of India (CCI) probe.
The CCI had launched the probe last year, alleging that the companies were favouring chosen vendors on their e-commerce platforms and engaging in anti-competitive business activities. The investigation is also looking into allegations that the two are trying to get around India’s regulations by forming complicated corporate structures.
The probe has sparked public squabbles between the two e-commerce behemoths and the federal authorities.
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Both firms deny any wrongdoing and have attempted to overturn the inquiry on several occasions.
On July 23, the Karnataka high court (HC) dismissed separate antitrust investigations petitions filed by Amazon India and Flipkart. The firms then proceeded to the Supreme Court.
Both companies deny all wrongdoing and have mounted multiple legal challenges.
They have argued that the CCI did not comply with internal criteria for minimum evidence before ordering its probe, and that it has not highlighted any agreement that violates existing laws.
However, a three-member bench led by Chief Justice NV Ramana remained unconvinced with today’s arguments, and even said Amazon and Flipkart should volunteer for such investigations.
(With inputs from agencies)
