The Competition Commission of India has requested the Supreme Court to take up legal challenges against its investigation into Amazon and Walmart’s Flipkart. This move follows challenges filed by Samsung, Vivo, and other entities at various Indian high courts, which the commission claims are intended to obstruct the inquiry.
In a filing dated December 3, which was reviewed by Reuters but has not been made public, the commission urged the Supreme Court to examine 23 challenges lodged by Samsung, Vivo, and a number of vendors utilizing Amazon and Flipkart. This request aims to facilitate a swift resolution to the ongoing case.
Amazon opted not to provide comments regarding the situation, and inquiries directed to Flipkart, Samsung, Vivo, and the competition commission remained unanswered.
This investigation represents a significant regulatory hurdle for Amazon and Flipkart, particularly in a burgeoning e-commerce market projected to grow beyond $160 billion (approximately Rs. 13,55,674 crore) by 2028, a sharp increase from $57 billion (around Rs. 4,82,959 crore) to $60 billion (approximately Rs. 5,08,383 crore) in 2023.
In August, the commission’s investigative unit determined that Amazon and Flipkart had violated India’s antitrust regulations by favoring specific sellers on their platforms. Additionally, smartphone manufacturers like Samsung and Vivo were found to be in violation for allegedly collaborating with these e-commerce giants to launch products exclusively online.
Since the commission’s findings, around two dozen lawsuits have emerged across five Indian high courts, initiated by select Amazon and Flipkart vendors alongside Samsung and Vivo. According to the commission, these lawsuits are designed to “weaken and derail” the ongoing investigation.
The commission warned that if these separate lawsuits are permitted to proceed, it could create significant impediments to the investigation’s director general’s ability to conduct inquiries effectively.
For years, Amazon and Flipkart have faced backlash from smaller retailers, who argue that the platforms’ business practices, including aggressive discounting and preferential treatment to certain sellers, have harmed their operations.
Both companies have consistently denied any allegations of misconduct.
A 2021 Reuters investigation based on internal Amazon documents revealed that the company had provided preferential treatment to a select group of sellers for a sustained period, using them to circumvent Indian laws.
The ongoing investigation by the commission, which commenced in 2020, has encountered various delays over time.
The recent wave of 23 lawsuits contesting the commission’s actions alleges procedural lapses in the investigation process.
The commission’s request for the Supreme Court to review these 23 cases is anticipated to be addressed this week, according to a lawyer familiar with the ongoing legal proceedings.
© Thomson Reuters 2024
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