Amazon, Flipkart Bid to Stall Antitrust Probe Into Business Practices Squashed by Karnataka High Court

The CCI last year ordered a probe following allegations that Amazon, Flipkart promote select sellers on their platforms.

By Reuters | Updated: 23 July 2021 12:11 IST

Amazon, Flipkart Bid to Stall Antitrust Probe Into Business Practices Squashed by Karnataka High Court

The investigation was on hold for several months after companies challenged it

Highlights

Amazon and Flipkart denied allegations levelled against them by traders
Goyal also criticised companies for indulging in "forum shopping"
The CCI investigation is the latest setback for the firms

An Indian court on Friday dismissed an appeal by Amazon and Walmart's Flipkart that sought to stall an an antitrust investigation into their business practices - a major setback for the companies.

The Competition Commission of India (CCI) last year ordered a probe following allegations from brick-and-mortar retailers that the US firms promote select sellers on their e-commerce platforms and use deep discounts to stifle competition.

The investigation was on hold for several months after companies challenged it, denying wrongdoing and arguing that the CCI lacked evidence, but a court allowed it to continue in June. On Friday, the high court in southern Karanataka rejected the US firms' appeals.

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"The appeals are nothing but an attempt to ensure that action initiated by the CCI ... does not attain finality," a two-judge bench said while reading the decision in court.

"The appeals are devoid of merit, and deserve to be dismissed."

Amazon and Flipkart did not immediately respond to a request for comment.

Flipkart Challenges Court Order on Antitrust Probe on Select Seller Promotion

"This further reinforces that the CCI investigation should continue promptly," said Abir Roy of Sarvada Legal which filed the antitrust case against Amazon, Flipkart on behalf of a trader group.

The CCI investigation is the latest setback for the firms, which are also grappling with tougher foreign investment rules and accusations from brick-and-mortar retailers that they circumvent Indian law by creating complex business structures.

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