Refusal of Petitions of Amazon and Flipkart for desisting antitrust investigation
Petitions of Amazon and Flipkart for desisting antitrust investigation refused by Indian Court
On Friday, an Indian court refused the petitions by Amazon.com Inc and Walmart’s Flipkart in which they requested the court to desist the antitrust investigation into the business practices of the U.S. firms, since it is dealing them a blow in their main growth market.
Followed by the complains of a group of traders accusing Amazon.com Inc and Walmart’s Flipkart of promoting some “preferred sellers” and hurting business for smaller sellers, in January 2020, the Competition Commission of India (CCI) started its investigation; however, last year. the two companies denied wrongdoing and a court put a hold on the investigation.
On Friday, Justice P.S. Dinesh Kumar of the high court in the southern state of Karnataka said that the petitions by Amazon and Flipkart have been dismissed, and any further relief to them haas been refused.
Abir Roy, a lawyer for the trader group, told Reuters that "the judge’s decision effectively paved the way to restart the investigation, which has been on hold for more than a year."
Most probably the companies are going to appeal against the verdict. Amazon said it would review the order “carefully and then decide on the next steps.” Flipkart did not immediately respond.
While ordering its investigation, the competition panel listed four alleged anti-competitive practices. These were exclusive launches of mobile phones by the e-commerce firms, promoting preferred sellers on their websites, deep discounting practices and prioritizing some seller listings over others.