SC rejects Amazon, Flipkart plea against CCI probe

New Delhi: The Supreme Court has rejected the plea filed by Amazon and Flipkart that sought stoppage of an antitrust investigation into their business practices, reports The Times of India. Rejecting the plea, SC stated on Monday that the firms must face an inquiry by the Competition Commission of India (CCI).

The Chief justice of India (CJI) NV Ramana, who led the bench, said that as big e-commerce organisations Amazon and Flipkart were expected to volunteer for antitrust investigation, but they are objecting.

Earlier, the Karnataka High Court dismissed the duo's plea challenging the CCI investigation. After that, they approached the SC and got their plea rejected now.

It was during last year, the CCI had ordered a probe after allegations from brick-and-mortar retailers that the e-commerce duo promoted select sellers on their platforms and ran business practices that stifled competition. The two firms denied any wrongdoings but mounted repeated legal challenges against the probe.

The CCI probe will be a major hitch for both Amazon and Flipkart, with new e-commerce regulations being imposed by the Indian government and accusations that the two have circumvented Indian law by creating complex business structures.

The allegations levelled against the firms include exclusive launches of mobile phones, promotion of sellers on their websites and deep discounting practices that disturb competition. Amazon, alone, faces another CCI accusation that the company is concealing facts and making false submissions when it sought approval for a 2019 deal with an Indian company.

Last month, union commerce minister Piyush Goyal had criticised the e-commerce giants for moving legal challenges and not complying with the CCI probe.