Online sellers Flipkart sues CCI over antitrust probe

Three sellers of Walmart-owned online shopping platform Flipkart have sued the Competition Commission of India (CCI) over an investigation that found Flipkart and its rival Amazon violated competition laws, Reuters news agency reported, citing court filings from Saturday, September 28.

The court cases were filed after a CCI investigation concluded in August found that some sellers, Amazon and Flipkart, as well as some smartphone brands, had violated Indian competition laws by giving undue preference to selected online sellers and prioritizing certain offers, it said agency.

Flipkart, owned by Walmart, is one of India’s largest e-commerce platforms and a competitor of Amazon, according to a Reuters report.

According to the report, three Flipkart sellers have filed applications before the Karnataka High Court seeking “set aside” of the inquiry report and stay of the CCI trial.

The lawsuits could potentially delay an investigation that began in 2020 and intensified after Confederation of All India Traders retailers complained to the competition authority. According to the agency’s report, Amazon and Flipkart have denied any wrongdoing.

CIGFIL Retail, Wishery Online and Xonique Ventures are the three Flipkart sellers who in their lawsuit alleged that during the investigation, they were asked to provide data to help officials but were later named as defendants, which is contrary to due process, according to the court document. agency.

“The alleged investigation… is arbitrary, opaque and unfair,” the sellers said in three separate court filings that will go to trial next week, the agency said.

Flipkart and CCI did not immediately respond to the agency’s queries. The report said the agency was unable to immediately contact the three sellers.

A former Amazon seller also sued the competition watchdog last week and obtained an interim injunction to block the investigation. Court documents show that CCI did not notify the company before naming it as an accused in the case, the agency said.