Antitrust Case: CCI Asks Amazon, Flipkart to Share Financial Data to Assess Penalty

The basis for determining the fine will be their financial statements, the amount of which will depend on the outcome of the hearing by the regulatory body of the companies’ defense in a case conducted four years ago.

Under the 2023 amendment to the Competition Law, the CCI has the right to impose a fine of up to 10% of an entity’s global turnover for anti-competitive practices.

The global turnover is likely to include revenue earned by the entity in India and abroad. It is unlikely to include the turnover of any sister company operating in another market, according to experts.

The CCI has already shared non-confidential versions of the findings of its Director General of Investigation (DG), who investigated the complaints of alleged anti-competitive conduct, and is in the process of sharing confidential versions of the report with both companies to enable them to defend their case, the first person said on condition of anonymity.

The development comes after the DG, attached to the CCI in August, confirmed alleged antitrust violations by two e-commerce platforms. It looked into practices such as preferential treatment and preferential listing of certain sellers on the platform, exclusive product launches and deep discounts, affecting small retailers on and off the platform.

“We have no comment on the disclosed findings of the DG investigation,” an Amazon spokesperson said in response to MintInquiry sent by email.

Emails sent on September 18 to CCI and Flipkart seeking comments on the article remained unanswered till the time of publication.

Unfair practices

“India’s digital economy is thriving, but there are growing concerns: Are consumers and small merchants really benefiting, or are they being squeezed out by e-commerce giants? When a select few merchants enjoy preferential treatment—be it better visibility, deeper discounts, or exclusive offers—the competitive balance is disrupted. Small businesses suffer and consumers are left with fewer options,” said Prakhar Mithal, an attorney at law firm Kings & Alliance Llp.

E-commerce platforms’ own brands consistently appearing at the top of search results make it difficult for smaller brands to gain visibility, Mithal said. This dual role—acting as both a marketplace and a competitor—creates an uneven playing field where smaller companies are marginalized and consumer choice is limited, he added.

Experts say transparency and fair market competition are key to sustainable growth.

“The government must ensure that the legal framework governing e-commerce is applied uniformly and transparently to promote fair competition between e-commerce platforms and traditional retail outlets,” said Manmeet Kaur, partner at law firm Karanjawala & Co.

Regulatory measures should prioritize consumer welfare by ensuring fair prices, product availability and strong data protection, Kaur said. Initiatives like the Online Network for Digital Commerce (ONDC) are key to empowering small businesses, enabling them to compete effectively with larger e-commerce players, Kaur added.

Mithal cited the European Union’s ex-ante regulation of the digital economy and said that a proactive regulatory framework that prevents platforms from abusing algorithms to favor certain sellers is needed even in India. “Products from all sellers should have a fair chance to be listed on the basis of quality, price and customer experience—not just platform partnerships,” Mithal said.

The corporate affairs ministry on Friday implemented an amendment to the competition law passed last year that requires the CCI to conduct interviews with all parties in a case, including the complainant, after completing its investigation but before issuing a final order.

The current investigation into the two e-commerce platforms was initiated based on a complaint by the Delhi Vyapar Mahasangh trade association. The CCI used to give this opportunity of hearing to all parties on their own, as per the principle of natural justice, but now it has become a legal obligation of the regulator and a right of all parties.