Supreme Court Declines CCI’s Request On Amazon And Flipkart In Antitrust Cases

Supreme Court declines CCI’s request on Amazon and Flipkart in antitrust cases

The Supreme Court has refused to transfer 24 petitions against Amazon and Flipkart alleging anti-competitive practices by e- commerce platforms.

A bench comprising Justice Abhay Oka and Justice Pankaj Mithal held that the Competition Commission of India (CCI) could not be given special treatment by directing the petitions to be heard directly by the division bench of the Karnataka High Court.

The court declined to transfer the matter to itself or the Delhi High Court. It asked Attorney General R Venkatramani to take instructions from the CCI.

The anti-trust body had instead desired a single-judge bench to hear the cases first, citing public interest. Earlier, several high courts had stayed the proceedings. Justice Oka stated, “Only because some litigant is to be given special treatment, by bypassing the rules, we can't place it directly before the division bench. We will be acceptinga dangerous argument that because in one high court, the matter is heard by a single judge, and in other high courts it is heard by a division bench, it should then come to that high court.”

While making the observations, the judge issued notices to various respondents including Samsung, Cloudtail and Vivo.

Meanwhile, senior counsels Abhishek Manu Singhvi and Mukul Rohatgi objected to the suggestion of directly approaching the top court, the Delhi High Court, or the division bench of the Karnataka High Court. It would mean bypassing an intra-court appeal in the Karnataka High Court. Singhvi also accused the CCI of engaging in ‘forum shopping’.

The CCI informed the apex court that the petitions pending across the high courts of Delhi, Punjab and Haryana, Karnataka and Allahabad involved public interest.

In its transfer plea, the CCI appealed, "The subject of inquiry before the petitioner i.e. e-commerce services offered by two major platforms, is of great importance since any anti-competitive activity allowed to continue on these platforms would harm and affect lakhs of consumers.”

The anti-trust body added, "It is important that even though the investigation was to be commenced in 2020, it was substantially delayed, in part due to the stay granted in favor of Amazon and Flipkart in the first round of litigation. Four years have passed, and a final order is yet to be passed in the present case.”

In 2020, the CCI found prima facie merit in Delhi Vyapar Sangh's allegations of violations of the Competition Act, 2002 by Amazon and Flipkart on the sale and purchase of mobile phones. It alleged that the companies indulged in exclusive arrangements, deep discounts and preferential listings, violating the laws.

The CCI ordered an investigation by the Director General. However, it was challenged by Amazon and Flipkart.

Recently, the Karnataka High Court stayed further proceedings against Amazon, prompting other high courts to pass similar orders.