Setback for Amazon, Flipkart as HC Allows Probe by CCI
By Pavankumar Baboori 
The Karnataka High Court has confirmed its decision to allow CCI to investigate eCommerce giants Flipkart and Amazon in violation of its provisions of the Competition Act, 2002 by indulging in the anti-competitive agreements.
On January 20, 2013, both Amazon and Flipkart challenged CCI's decision to initiate an inquiry through its director-general. The decision came in light of a response to a complaint filed by Delhi Vyapar Mahasangh.
Revealing the reason behind the petition, Justice P S Dinesh Kumar has taken into the fact that the “informant has filed information and appended material papers, which, according to the informant, support its allegations.”
The judges also observed that the additional solicitor general had informed the court that CCI has also called upon the informant to file a certificate under section 65B of the Indian Evidence Act, which poses a penalty of 1 crore under section 44 the Competition Act for submitting incorrect information.
Supporting its decision, the CCI has cleared that the investigation was ordered after a thorough examination of records founds prima facie material against the companies as “There appears to be an exclusive partnership between smartphone manufacturers and eCommence platforms.”
The Karnataka High Court, in response, has passed an interim order putting a stay on the CCI’s ruling in the case on February 24, 2020. Following this, the CCI had sought out the apex court, which had asked the CCI to approach the High Court.
Today’s order allows the Director-general of CCI to proceed with the investigation.
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