SC refuses to stay CCI probe against Amazon, Flipkart
Saying that CCI enquiry to go on, the bench, however, extended the time by four weeks for e-commerce companies to file reply to CCI notice
New Delhi: In a setback to e-commerce giants Amazon and Flipkart, the Supreme Court on Monday refused to stay the investigation initiated by the Competition Commission of India (CCI) against them for alleged competition law violations.
A Bench of Chief Justice of India NV Ramana, Justices Vineet Saran and Surya Kant observed that it expects big companies to voluntarily go for an inquiry.
"We expect big organizations like Amazon and Flipkart to voluntarily go for enquiry and you don't want even that? You have to submit and enquiry has to be permitted," the Bench said.
The apex court dismissed the pleas of Amazon and Flipkart challenging an order of the Karnataka High Court which had allowed CCI to continue its investigation against them for alleged competition law violations in smartphone sales on the two websites.
Saying that CCI enquiry to go on, the bench, however, extended the time by four weeks for e-commerce companies to file reply to CCI notice.
"We see no reason to interfere in the order. However, seeing that time granted is expiring on August 9 we extend it by four weeks", the bench said.
The appeals were filed against the High Court order of allowing CCI to probe Amazon India and Walmart-owned e-commerce firm Flipkart for alleged competition law violations in smartphone sales on the two websites.
The High Court had also dismissed the pleas of e-commerce firms that sought to quash the CCI's probe. Challenging the order, they both approached the top court.
The order of the High Court had come on a complaint by Delhi Vyapar Mahasangh, whose members comprise many traders dealing in smartphones and related accessories.
On January 13, 2020, fair trade regulator CCI ordered an investigation against Amazon and Flipkart for alleged malpractices, including deep discounting and tie-ups with preferred sellers on their platforms. Following the CCI order, both the companies had moved to the High Court seeking quashing of the probe order.
The companies had denied any wrongdoing, but the High Court had said the e-commerce firms have no need to shy away from an inquiry if they were not involved in violations.