By Consultants Review Team
According to a report, the Competition Commission of India (CCI) is considering asking the Supreme Court to combine several writ petitions pertaining to an antitrust probe involving the massive online retailers Amazon, Flipkart, and specific vendors on their marketplaces.
According to a CCI report, vendors have filed more than a dozen petitions in high courts throughout the country, including those in Karnataka, Telangana, Madras, and Kolkata, citing procedural errors and suggesting that the platforms would favor certain sellers.
The CCI's investigation has been halted by these filings, thus the Commission is seeking legal counsel on whether to file a transfer petition to the highest court in order to consolidate the cases.
Combining cases to ensure prompt resolution
According to legal experts cited in the newspaper, CCI's possible transfer petition to the Supreme Court might expedite the procedure and give the Commission the opportunity to resolve all of the seller concerns in one place.
Allegations of preferential treatment in online sales
Amazon and Flipkart may have violated competition laws, according to a study published in August by the CCI's Director General of Investigation (DGI). Concerns regarding deep discounting, exclusive product introductions, and favoring some merchants over others are mentioned in the report.
Some vendors were classified as opposing parties after being first requested for information as third parties, apparently without the necessary CCI clearance. One of these vendors, Appario Retail Pvt Ltd, has filed a challenge against this reclassification in the Karnataka High Court.
High Court stay order
After considering the applications of multiple vendors, the Karnataka High Court issued a temporary stay on CCI's operations on September 27. The next hearing is scheduled for November 20. Public comments regarding the ongoing case have not yet been made by the CCI or the participating e-commerce enterprises.
Antitrust enforcement's future
According to the study, Samir R. Gandhi, co-founder of Axiom 5 Law Chambers, stated that antitrust cases frequently encounter fierce litigation because of the huge stakes. According to him, there may be a greater chance of settling these issues without drawn-out litigation now that the CCI has introduced settlement and commitment processes.
CCI supervision
Since e-commerce is changing the retail landscape in India, the CCI has expanded its monitoring of these platforms. E-commerce platforms were forced to comply with a CCI inquiry that was started in 2020, and traditional retailers are still urging vigilance against anti-competitive conduct. The current legal stalemate is the result of the investigation's conclusions, which were concluded in August.
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