Online sellers on Flipkart sue CCI over antitrust probe
Three online sellers operating on Walmart-owned Flipkart have sued India’s antitrust watchdog over an investigation that found they, Flipkart and rival Amazon violated competition laws, according to court filings seen by Reuters.
The filings come after antitrust investigations concluded in August found that Amazon and Flipkart, some of its sellers and smartphone brands, violated local competition laws by giving undue preference to select online sellers and prioritizing certain listings, Reuters reports.
Flipkart is one of India’s largest e-commerce players and a competitor to Amazon.
In an attempt to quash the critical proceedings, the three sellers on the platform filed representations in the Karnataka High Court seeking to “set aside” the inquiry report and stay the Competition Commission of India (CCI) proceedings.
Lawsuits from Amazon and Flipkart sellers could potentially delay the investigation process that first began in 2020 and was triggered after brick-and-mortar retailers from the Confederation of All India Traders filed a complaint with the watchdog. Amazon and Flipkart deny any wrongdoing.
Three of the Flipkart sellers – CIGFIL Retail, Wishery Online and fair trial, according to the court papers.
“The alleged investigation… is arbitrary, opaque and unfair,” the sellers argued in three separate lawsuits, which are likely to go to trial next week.
Flipkart and the CCI did not immediately respond to a request for comment. Reuters could not immediately reach the three sellers, whose filings are being reported for the first time.
Last week, a former Amazon seller also took the CCI to court and obtained an interim injunction blocking the continuation of the investigation. The court filing – which has been seen by Reuters – argues that the CCI did not issue a notice before it was identified as a suspect in the case.
© Thomson Reuters 2024
