India’s antitrust regulator, the Competition Commission of India (CCI), has approached the Supreme Court to address legal challenges hindering its investigation into Amazon and Walmart-owned Flipkart. The challenges, filed by Samsung, Vivo, and other sellers across various Indian high courts, are reportedly attempts to obstruct the probe.
On December 3, the CCI submitted a plea, reviewed by Reuters, requesting the consolidation of 23 separate legal challenges. These cases, brought by Samsung, Vivo, and sellers associated with Amazon and Flipkart, aim to delay the investigation into alleged antitrust violations.
Amazon declined to comment on the matter, while Flipkart, Samsung, Vivo, and the CCI did not respond to inquiries.
Investigation Overview
The investigation has become a critical regulatory hurdle for Amazon and Flipkart in India, a market where e-commerce sales are projected to soar to over $160 billion by 2028, compared to $57–$60 billion in 2023.
In August, the CCI’s investigation unit reported that Amazon and Flipkart had violated antitrust laws by favoring select sellers on their platforms. The probe also revealed that smartphone manufacturers, including Samsung and Vivo, had collaborated with these platforms to launch products exclusively online, breaching Indian regulations.
Following these findings, around 23 lawsuits were filed across five Indian high courts. These lawsuits, initiated by Amazon and Flipkart vendors, along with Samsung and Vivo, aim to stall the investigation. The CCI argued in its filing that such legal challenges disrupt the investigative process and undermine its autonomy.
Challenges Facing the Probe
The lawsuits claim that the CCI did not adhere to due process during the investigation. If allowed to proceed, the commission warns that these cases could create significant obstacles, delaying the resolution of the matter.
For years, Amazon and Flipkart have been criticized by smaller retailers for allegedly offering deep discounts and favoring specific sellers, practices they deny. A 2021 Reuters investigation revealed that Amazon gave preferential treatment to a select group of sellers, bypassing Indian regulations.
The investigation, launched in 2020, has already encountered numerous delays. The CCI’s latest request for the Supreme Court to take over these cases could expedite the process. A lawyer familiar with the matter noted that the court is likely to hear the plea this week.
Amazon and Flipkart continue to deny any wrongdoing, maintaining that their practices comply with Indian laws. However, the outcome of this legal battle could significantly impact the e-commerce landscape in India.
