Troubles for e-commerce giants Amazon and Flipkart continue to mount as they face legal challenges from the Competition Commission of India (CCI). The CCI has filed a petition in the Supreme Court, accusing both companies of engaging in unfair business practices. The move comes after several years of ongoing investigations into their operations, raising critical concerns about the extent of their market dominance and the potential harm caused to smaller businesses.
Legal experts believe the case could have wide-reaching implications for the CCI’s powers, particularly regarding its ability to conduct searches and the scope of its investigations. Should the Supreme Court rule in favor of Amazon and Flipkart, it may lead to delays in the CCI’s ongoing investigations and establish a precedent for future cases involving large corporations in India.
In a December 3 affidavit, the CCI requested that 24 different cases against Amazon and Flipkart, currently being handled by various High Courts—including those in Delhi, Karnataka, and Telangana—be transferred to the Supreme Court. As of now, no specific court has been assigned to hear the case, further complicating the legal proceedings.
The initial investigation by the CCI into Amazon and Flipkart’s business practices has been on hold since the companies appealed the process. The CCI began its inquiry in 2020 following complaints from small business owners, particularly from the Delhi Vyapar Mahasangh, who alleged that the e-commerce platforms were providing preferential treatment to certain sellers closely affiliated with them. These claims raised concerns about the fairness and transparency of business dealings on the platforms, which many believe give an undue advantage to certain players over others.
The ongoing investigation, which has now stretched over four years, has been criticized for significant delays, leaving the CCI frustrated by the lack of resolution. The commission has expressed concerns about the protracted legal process, which has prevented them from taking further action against the companies.
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