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Current Affairs

Issues in anti-trust probe against Amazon and Flipkart

Date: 12 August 2021 Tags: Judiciary & Judgments

Issue

The Supreme Court of India refused to halt the anti-trust probe by Competition Commission of India against Amazon and Flipkart.

 

Background

The companies had filed a petition in the Supreme Court after the Karnataka High Court had refused to give a stay to the investigation.

 

Details

  • The Supreme Court of India said that it did not find any reason for stopping the probe, which was challenged by a writ appeal by petitioners.

  • Delhi Vyapar Mahasang had made allegation of exclusive sales agreement between e-commerce giants and Smartphone makers to promote and sell certain brands of phones.

  • The Competition Commission of India had taken note of the complaint and decided to launch an investigation to check into the allegations.

  • The allegations also say that e-commerce companies had given certain sellers higher preference ranking by making backroom deals with them.

  • Several sellers were encouraged to offer high discounts during Flipkart Big Billion days and Amazon Prime day, which was partially reimbursed by the companies.

 

Company’s view

The companies approached the high court by saying that seller and the company had no agreements to impact competition.

 

Court’s opinion

The court said that commission’s orders were administrative in nature and there was no need to form an opinion before ordering an investigation.

 

Way ahead

The issue will be investigated by the Director General of CCI and the findings will be submitted to CCI before passing final orders.