The Supreme Court of India on Monday expressed its inclination to transfer all petitions challenging the Competition Commission of India’s (CCI) anti-trust investigation into Amazon and Flipkart to the Karnataka High Court. The petitions concern alleged malpractices by the two e-commerce giants in violation of competition laws.
A bench comprising Justices Abhay S. Oka and Manmohan said that, prima facie, it seemed appropriate for the Karnataka High Court to handle all writ petitions related to the matter. However, the court directed the Karnataka High Court to refrain from proceeding with the hearings on the petitions until January 6, 2024, when the Supreme Court will again take up the case.
The matter came before the Supreme Court through a transfer petition filed by the CCI. The commission had challenged the ongoing anti-trust probes in various high courts, including those in Delhi, Karnataka, Madras, Punjab & Haryana, Telangana, and Allahabad. In these proceedings, several high courts had stayed the CCI investigation, hindering its progress.
In its plea, the CCI sought to either consolidate all the cases pending in different high courts and bring them before the Supreme Court or have them transferred to the Delhi High Court. The Supreme Court bench noted that, before deciding on the transfer, it would need to hear from all the petitioners involved in the matter. As a result, the court granted the CCI two days to amend its petition to include all petitioners who had approached the high courts.
Attorney General R. Venkataramani, representing the CCI, informed the court that the commission had no objection to the Karnataka High Court hearing the case. However, he highlighted that the case before the Karnataka High Court had already progressed significantly, with 13 petitions out of the 26 total cases currently being heard there.
The ongoing anti-trust investigation by the CCI was initiated after the Delhi Vyapar Mahasangh filed a complaint alleging various violations under the Competition Act, 2002 by Amazon Seller Services Pvt. Ltd. and Flipkart Internet Services Pvt. Ltd. The complaint accused the two e-commerce platforms of engaging in anti-competitive practices that harm consumers.
The CCI, in January 2020, had directed an investigation by the Director General under the Act, which later resulted in a probe report. The CCI’s order on August 28 this year considered the Director General’s investigation report, which was shared with the opposing parties, leading to the legal challenge by the e-retailers.
Amazon and Flipkart have contested the investigation, claiming that the CCI wrongly altered their “status” from third-party entities to “opposite parties” without giving them a fair opportunity to be heard. The e-commerce giants are currently litigating the case, with senior advocates Abhishek Manu Singhvi, S. Muralidhar, and Sajam Poovayya representing the platforms in court.
In its plea, the CCI emphasized that the issues raised in the petitions involve substantial questions of law that are of national importance. The commission argued that allowing any anti-competitive activities on such large platforms could harm millions of ordinary consumers across the country.
The Supreme Court’s order halting the Karnataka High Court’s proceedings until January 6 reflects the importance of resolving these key legal questions concerning the future of e-commerce regulation in India.
Sources By Agencies
