The Competition Commission of India (CCI) has retracted its investigation report concerning potential violations of competition laws involving e-commerce leader Flipkart, an action documented in recent reports. This marks the second time the CCI has rescinded a report, following a similar incident involving Apple in August.
The withdrawal came after Xiaomi lodged a complaint, asserting that the report implicated Flipkart, certain sellers, and various smartphone manufacturers in breaches of competition law while revealing sensitive commercial information that should have been redacted, according to Reuters.
Two sources and an internal CCI document dated October 1, which was reviewed by Reuters, indicate that the regulatory body has instructed recipients of the Flipkart report to destroy all copies and provide a written assurance that they will not disseminate the document further.
Xiaomi’s contention was that the report disclosed model-wise sales data, critical to its competitive strategy.
In its communication, the CCI noted that some details had been “inadvertently” included in the report and supplied the involved parties with a revised document, although it did not specify the nature of the modifications.
Neither Xiaomi nor Flipkart offered comments in response to Reuters’ requests for information, and the CCI also did not reply.
Earlier, in August, the CCI retracted its antitrust report on Apple after the tech company raised concerns regarding the inclusion of confidential commercial information that was shared with some stakeholders.
The ongoing investigation, which commenced in 2020, uncovered that Flipkart, along with its competitor Amazon, favored certain sellers and prioritized specific listings. Furthermore, it was found that these companies had colluded with brands such as Xiaomi, Samsung, and Vivo to exclusively feature their smartphones on their platforms.
However, the progression of the investigation has been significantly delayed because Vivo and various online sellers associated with these two e-commerce giants have contested their involvement in the inquiry and succeeded in obtaining court injunctions.
© Thomson Reuters 2024
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