Flipkart Joins Amazon In Challenging CCI’s Antitrust Probe
After Amazon.com Inc., Walmart-owned Flipkart filed a legal challenge against an antitrust probe ordered against it by the Competition Commission of India.
“The High Court of Karnataka issued an interim stay on the CCI investigation. We are a party to the CCI order and a respondent in Amazon’s writ against the order. Given this position and the high court’s stay, as a procedural matter, we are also filing a writ,” Flipkart Spokesperson said in a WhatsApp response.
Like Flipkart is a respondent in Amazon’s filling, Amazon is a respondent in Flipkart’s filing.
In January, the antitrust regulator ordered a probe into the practices of the two e-commerce companies, stating that discounting practices, exclusive tie-ups, private labels are anti-competitive. The probe was ordered after a New Delhi-based trader group complained that the online retailers were promoting select sellers, thus hurting business for other smaller players.
The two companies refuted the allegations. On Feb. 13, Amazon moved the Karnataka High Court seeking a stay on the investigation. It termed the CCI’s actions as an “open-ended fishing expedition” and a misuse of its powers. The high court stayed the CCI’s order the next day.
Flipkart’s filing comes just days ahead of U.S. President Donald Trump’s visit to India and amid concerns about India tightening its foreign investment rules for the e-commerce sector.