NEW DELHI: The Supreme Court on Monday transferred all the petitions related to alleged anti-competitive practices by Amazon and Walmart's Flipkart e-commerce platforms to the Karnataka High Court’s single judge bench for adjudication.
Amazon and Flipkart Face Karnataka HC Scrutiny Over Anti-Competitive Allegations
A bench of Justices Abhay Oka and Pankaj Mithal directed the transfer of the cases, pending before different High Courts, after all the parties agreed for such transfer, to expedite adjudication and to minimise chances of conflicting judgments.
The court had earlier asked Attorney General R Venkatramani to take instructions from the Competition Commission of India (CCI) for transferring over two dozen petitions to the Karnataka High Court’s single judge bench.
Supreme Court Centralizes E-Commerce Antitrust Cases for Faster Resolution
The CCI sought transfer of the matter to either one High Court or to the top court, as petitions were pending across various High Courts of Delhi, Punjab and Haryana, Karnataka and Allahabad involving public interest.
It said the inquiry related to e-commerce services offered by two of the major platforms, is of great general importance since if any anticompetitive activity is allowed to continue on these platforms, it harms and affects lakhs if not crores of ordinary people each passing day as these are the ultimate consumers on these platforms.
Even though the investigation was to be commenced in 2020, it was substantially delayed, in part due to the stay granted in favour of Amazon and Flipkart in the first round of litigation, the plea said.
"Four years have passed and a final order is yet to be passed in the present case,” the CCI said in its transfer plea.
In 2020, the CCI ordered an investigation by the Director General after finding prima facie merit in Delhi Vyapar Sangh’s allegations of violations of Competition Act, 2002 by Amazon and Flipkart relating to sale and purchase of mobile phones submission.
It alleged that the e-commerce companies indulged in exclusive arrangements, deep discounts and preferential listings in violation of competition law.
This development was challenged by Amazon and Flipkart. The Karnataka High Court had in September stayed further proceedings against Amazon, prompting all other HCs to pass similar orders.
