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K'taka HC dismisses plea of Flipkart, Amazon against investigation by CCI
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Monday, 26 July, 2021, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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The Karnataka High Court has dismissed the plea of e-commerce giants Flipkart and Amazon against an investigation by the Competition Commission of India (CCI).
The Division Bench of the High Court has upheld the previous order of the Single Bench judgment allowing the CCI to conduct an investigation into the alleged business practices of the two e-commerce giants in India.
The court had previously reserved the order on June 25th, after the two companies challenged an order passed by the CCI in January last year for investigations into the alleged malpractices.
The CCI passed the order after an appeal filed before it by Delhi Vyapar MahaSangh and the apex body of the traders in India, the Confederation of Indian Traders (CAIT).
In a statement, CAIT has stated, "It fully vindicates the stand of CAIT that Amazon and Flipkart business model is entirely based on violating the FDI policy, rules and other laws, mischievous business practices, and therefore, without wasting any more time, the CCI should immediately begin its probe.”
CAIT added that the Division Bench of Karnataka High Court dismissing the appeals by Flipkart and Amazon against the order of a Single Bench of the High Court dismissing their writ petitions against the CCI's order directing investigation into them, is welcome.
The Division Bench, in its order pronounced on July 23, 2021, has stated that "By no stretch of imagination can inquiry be quashed at this stage", directing Flipkart and Amazon to face the inquiry instead. The Division Bench also noted that the scheme of the Act provided for sufficient safeguards for the Appellant's in form of appeal from the CCI's orders and dismissed the Appeal with the aforesaid observations, reads a statement by CAIT.
CAIT was represented by Advocate Gautam Aditya and Delhi Vyapar Mahasangh was represented by Advocate Abir Roy.
According to the CAIT, CCI finds a prima facie case for investigation against Amazon and Flipkart for violating competition law and distorting the level playing field in Jan 2020.
Amazon and Flipkart approached the Karnataka High Court in Feb 2020 and obtained a stay on the probe. The CCI approached the Supreme Court and Supreme Court directed the Karnataka High Court to hear the matter. Thereafter the matter was heard for nearly 40 days first by Single Judge Bench of Karnataka High Court quashing plea of Amazon & Flipkart which was challenged by both e- tailers in Double Bench of Karnataka High Court and order was reserved, which was pronounced on Friday.
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