The Competition Commission of India (CCI) has urged the Supreme Court to consolidate 23 lawsuits aimed at obstructing its antitrust investigation into Amazon, Flipkart, Samsung, and Vivo. The probe, initiated in 2020, uncovers alleged violations of antitrust laws, with accusations of preferential treatment. The Supreme Court is set to hear the plea amid ongoing tensions in India’s growing e-commerce sector.
New Delhi: India’s Competition Commission of India (CCI) has requested the Supreme Court to consolidate and hear 23 legal challenges aimed at halting its investigation into Amazon and Walmart-owned Flipkart, as well as smartphone makers like Samsung and Vivo. The plea, filed on December 3, accuses the companies of trying to “debilitate and scuttle” the ongoing antitrust probe through lawsuits filed in various high courts.
The investigation, a significant regulatory challenge for Amazon and Flipkart, focuses on alleged violations of India’s antitrust laws. The e-commerce market, valued at $57 billion (roughly Rs. 4,82,959 crore) in 2023, is expected to surge to over $160 billion (roughly Rs. 13,55,674 crore) by 2028.
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According to the CCI’s August findings, Amazon and Flipkart favored selected sellers on their platforms, giving them undue advantages. The probe also revealed that smartphone giants Samsung and Vivo colluded with the e-commerce companies for exclusive online product launches, breaching antitrust laws.
Despite the allegations, Amazon and Flipkart deny any wrongdoing, with both declining to comment on the recent developments.
Since the CCI’s findings, nearly two dozen lawsuits have been filed by vendors and companies like Samsung and Vivo across five Indian high courts, challenging the probe. The CCI has argued that such litigation is an attempt to stall the investigation and interfere with its process.
“The separate lawsuits, if allowed, will lead to absurdity since it will interfere with the flexibility of the (commission’s) Director General to carry out investigation in any matter,”
the CCI stated.
Most of the lawsuits accuse the CCI of not following due process during its investigation. A lawyer involved in the case revealed that the Supreme Court is expected to hear the CCI’s plea to consolidate the cases this week.
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Amazon and Flipkart have faced longstanding criticism from smaller retailers for practices like deep discounts and preferential treatment to select sellers. A 2021 Reuters investigation found Amazon used a small group of sellers to bypass Indian laws, further fueling concerns.
The CCI’s investigation, initiated in 2020, has been plagued by delays. However, the commission remains determined to expedite the process by addressing the lawsuits collectively in the Supreme Court.
As India’s e-commerce sector grows, this legal battle underscores the tension between multinational giants and local market regulations, with the outcome likely to shape the future of online retail in the country.
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