NCLAT Asks CCI To Initiate Again Probe Against Flipkart For Unfair Practices
The National Company Law Appellate Tribunal has asked Competition Commission of India to initiate again investigations against Flipkart for unfair practices.
A three-member bench of the NCLAT, headed by Chairman Justice SJ Mukhopadhaya, has set aside an earlier order passed by CCI in this regard. The anti-trust regulator had absolved the e-commerce firm of unfair practices using its dominant position in the online retail market.
"We set aside the order passed by CCI...," the bench said, adding that the regulator "is directed to initiate probe against Flipkart". The NCLAT said that the All India Online Vendors Association has successfully made its case here.
CCI had in its Nov. 6, 2018, order had held that the business practices of Flipkart and Amazon India are not in violation of competition norms and rejected allegations of abuse of market dominance made by AIOVA.
The AIOVA had accused India Pvt.. Ltd of abusing its market dominance. The company is into wholesale trading/distribution of books, mobiles, computers and related accessories, and e-commerce marketplace Flipkart Internet Pvt. Ltd.
The CCI had ruled that looking at the present market construct and structure of online marketplace platforms in India, "it does not appear that any one player in the market is commanding any dominant position at this stage of evolution of market".