Mint Explainer: Why did Karnataka HC halt CCI's action against Amazon, Flipkart
Subscribe to enjoy similar stories. Flipkart and Amazon are at a critical juncture in India as a Karnataka High Court has temporarily halted the Competition Commission of India's (CCI) investigation into the e-commerce giants over alleged anti-competitive practices and potential violations of foreign direct investment rules.
In August, the CCI’s Director General (DG) confirmed suspected violations of competition law by the two platforms, citing practices such as preferential treatment of certain sellers, exclusive product launches, and deep discounting—actions that have impacted small retailers both on and off the platforms. Read this | When India closed the door on its e-commerce tax, it left a window open This interim stay, based on a procedural misstep by the regulator, could have far-reaching implications for the future of competition and India's booming e-commerce space.
Mint takes a closer look. The case against Amazon and Flipkart was triggered based on a 2019 complaint by Delhi Vyapar Mahasangh, affiliated with the Confederation of All India, which accused the online marketplaces of favouring specific sellers.
On 13 January 2020, the Competition Commission of India (CCI) launched a formal probe into the companies for alleged anti-competitive practices, focusing on exclusive arrangements, deep discounting, and preferential product listings. The CCI directed its directed its DG to assess whether these actions involved exclusionary tactics that distorted competition.
In February 2020, the Karnataka High Court temporarily paused the investigation after Amazon and Flipkart challenged the CCI's authority. However, by June 2021, the court allowed the investigation to resume, and the companies sought relief from the
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