Karnataka High Court dismisses Amazon, Flipkart’s plea against CCI probe

Karnataka High Court dismisses Amazon, Flipkart’s plea against CCI probe

Bengaluru, Jun 11 (PTI) The Karnataka High Court on Friday dismissed the pleas of Amazon and Flipkart to quash the Competition Commission of India’s inquiry order into alleged violation of provisions of competition laws.

The Competition Commission of India (CCI) had directed probe into the two major e-commerce companies for alleged violation of provisions of competition laws.

Giving this order, Justice PS Dinesh Kumar dismissed the petition of both the companies. “It is expected that there must be some reason behind the order directing the inquiry, which the Commission carries out,” the order of the High Court said.

“Therefore, it would be unwise to consider the issues raised by the petitioners in these writ petitions without due diligence and to stop the investigation at this stage,” the court said. Therefore, no interference is required in the existing order.

The Court also held that the order passed by the CCI has been an administrative action without entering into any judicial process.

Significantly, in January 2020, the CCI had ordered an inquiry against Flipkart and Amazon for adopting other alleged unethical business activities, including offering huge discounts and selling goods in preferential tie-up with certain companies.

After this order, the companies had reached the High Court to quash the inquiry order. Although the Karnataka High Court had given interim stay in the CCI’s inquiry order on 14 February 2020 but after that the CCI reached the Supreme Court where the apex court asked it to move the High Court on 26 October 2020.

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