Flipkart files writ petition after HC stay on CCI probe

Walmart-owned ecommerce giant Flipkart has filed a separate writ petition to move the Karnataka High Court on the Competition Commission of India (CCI) investigation into its and rival Amazon’s India business. 

“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 Stay, as a procedural matter, we are also filing a writ,” a Flipkart spokesperson told TechCircle in an email.

Earlier this month, Amazon had filed a writ petition with the Karnataka High Court, citing that the findings of order “...are perverse, arbitrary and untenable in law.” Following the hearing, the court had issued an interim stay of the investigation.

In January, CCI found a prima-facie case of Competition Act violation by the e-commerce marketplaces based on a complaint filed by Delhi Vyapar Mahasangh (DVM).  

The trade body had alleged that the companies were in violation of the foreign direct investment (FDI) guidelines and indulged in predatory pricing and deep discounting, violating competition laws.

The court has given a time period of eight weeks to the respondents, which include Flipkart, DVM, CCI and Confederation of All India Traders, to file their objections or counters within eight weeks from February 14 when the stay on CCI investigation was issued.

“...it is recorded in paragraphs No.22 and 23 that there ‘appears’ to be exclusive partnership between smartphone manufacturers and e-commerce platforms. This finding is based on allegations made in the complaint. These findings have been strongly assailed by Shri Gopal Subramanium contending that CCI has imaged ‘some agreement’ and directed an enquiry,” the presiding bench observed in the order, reviewed by TechCircle.