Anti-trust case: CCI asks Amazon, Flipkart to share financials to decide penalty
Subscribe to enjoy similar stories. NEW DELHI : The Competition Commission of India (CCI) has asked Amazon Seller Services Pvt. Ltd and Flipkart Internet Pvt.
Ltd to share their financial statements as the anti-trust case against the e-commerce giants enters the last leg, according to two persons aware of the development. Their financial statements will form the basis for determining the penalty, depending on the outcome of the regulator’s hearing of the companies’ defence in the four-year-old case. As per a 2023 amendment to the competition law, the CCI is empowered to impose a penalty of up to 10% of an entity's global turnover for anti-competitive conduct.
The global turnover is likely to include the revenue earned by the entity in India and abroad. It is unlikely to include the turnover of any sister enterprise doing business in another market, according to experts. The CCI has already shared non-confidential versions of the findings of its Director General of Investigation (DG), which looked into complaints of alleged anti-competitive conduct and is in the process of sharing the confidential versions of the report with the two companies.
This is to enable them to defend their case, the first person mentioned above said on the condition of anonymity. The development comes after the DG attached to the CCI in August confirmed alleged violations of competition law by the two e-commerce platforms. It looked into practices like giving preferential treatment and preferential listing to certain sellers on the platform, exclusive product launches and deep discounting, affecting small retailers on the platform and outside.
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