The Supreme Court recently ruled that the Competition Commission of India (CCI) will not receive special treatment regarding writ petitions challenging its antitrust probe against Amazon and Flipkart. This decision comes amidst ongoing litigation that has stalled the CCI’s investigation for four years.
CONSOLIDATIONS OF PETITIONS
The Supreme Court refused to transfer the 24 writ petitions filed in various High Courts to a division bench of the Karnataka High Court. Instead, the court suggested consolidating all petitions with a single judge according to the Karnataka High Court rules. The bench, headed by Justice Abhay Oka, emphasized that no litigant should receive special treatment by bypassing one step of the litigation process.
Follow Absloute India  for the latest news, trends, and insights. Stay informed and ahead with top-notch content!
ARGUMENTS FROM BOTH SIDES
The CCI, represented by Attorney General R Venkataramani, argued that having multiple cases in several High Courts could lead to conflicting judgments and requested the transfer of petitions to either the Supreme Court or the Delhi High Court. However, the Supreme Court pointed out that in similar situations in the past, it had directed such cases to the leading High Court, where they progressed as per the rules.
Senior advocates Abhishek Manu Singhvi and Mukul Rohatgi, appearing for the respondents(Flipkart and Amazon), objected to the suggestion of directly approaching the Supreme Court, as that would bypass an intra-court appeal in the High Court. The court proposed that the cases be heard by a single judge in the Karnataka High Court, with the option to appeal to the division bench or the Supreme Court if necessary.
BACKGROUND: The CCI Probe into Amazon and Flipkart
INITIATION OF THE PROBE:
The CCI initiated an antitrust investigation into Amazon and Flipkart back in 2020. The investigation was expanded in 2024 to include various online sellers on these platforms.
ALLEGATIONS TOWARDS AMAZON AND FLIPKART:
- Anti-Competitive Practices: The CCI alleges that Amazon and Flipkart have been engaging in practices that harm competition. This includes giving preferential treatment to certain sellers, which is seen as anti-competitive.
- Preferred Sellers: The investigation found that both e-commerce giants favored some sellers over others. This means that certain sellers, like Cloudtail India Pvt. Ltd and Appario Retail Pvt. Ltd, received better terms and conditions compared to others.
- Violation of Competition Laws: The CCI claims that these practices violate competition laws, as they create an uneven playing field for sellers on their platforms.
Ownership Details of Key Sellers.
- Cloudtail India Pvt. Ltd: Cloudtail was a joint venture between Amazon India and Catamaran Ventures, the venture capital firm owned by Infosys founder N.R. Narayana Murthy. However, due to changes in e-commerce regulations, Amazon acquired a 100% stake in Cloudtail India in 2022.
- Appario Retail Pvt. Ltd: Appario Retail is a joint venture between Amazon Asia Pacific Holdings and the Patni Group. The holding company for Appario Retail is Frontizo Business Services Pvt. Ltd, where Patni holds a 51% stake and Amazon Asia Pacific Holdings has a 48% stake. The remaining 1% stake is held by Zaffre LLC.
- Zaffre LLC: Zaffre LLC is an investment company focused on improving healthcare delivery. The founder of Zaffre LLC is Peter Sally, a mission-driven venture founder based in Boston, Massachusetts. Peter Sally has also been involved with several other companies, including Seae Ventures, Zest Health, Iterative Health, SilverBills LLC, and Cohero Health.
FINAL WORDS
The Supreme Court’s decision ensures that the CCI’s investigation into Amazon and Flipkart’s alleged anti-competitive practices will proceed without special treatment, reinforcing the importance of adhering to established legal procedures. This ruling aims to expedite the resolution of the ongoing litigation and allow the CCI to complete its probe.
What do you think about the Supreme Court’s decision? Do you believe it will impact the e-commerce landscape in India?
Stay connected with us for more updates and engaging content
