Supreme Court in CCI vs. Amazon and Flipkart – “Prima Facie, All Cases Should Be Transferred to Karnataka High Court”

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The Supreme Court of India indicated that all pending cases against Amazon and Flipkart for alleged anti-competitive practices should be transferred to the Karnataka High Court. During a hearing, the Court directed no hearings on Amazon’s petitions until January 6 and permitted the Competition Commission of India to amend and add parties to the cases.

New Delhi: The Supreme Court of India on Monday (Dec 16th) indicated a “prima facie” view that all cases regarding alleged anti-competitive practices by e-commerce giants Amazon and Flipkart, currently pending in various High Courts, should be transferred to the Karnataka High Court. This observation came during a hearing in the matter of Competition Commission of India (CCI) Vs. Cloudtail.

A Bench comprising Justices AS Oka and Manmohan directed the Karnataka High Court not to hear Amazon’s petitions against the Competition Commission of India (CCI) until January 6. Notably, the Karnataka High Court is scheduled to hear these cases on December 17.

The Supreme Court was addressing CCI’s plea to consolidate 24 writ petitions filed against Amazon and Flipkart, either by transferring them to the apex court or a single High Court. The CCI had initially sought a transfer to the Delhi High Court, emphasizing the need for expedited adjudication and consistency in rulings. However, during the hearing on December 13, the Supreme Court expressed its inclination to transfer the cases to Karnataka High Court instead.

On Monday, the Court permitted CCI to add all relevant parties to the case and directed that an “amended cause title” be filed within two days. The Court noted,

“Parties which are represented today take notice… In the meanwhile, the writ petitions which are heard by Karnataka HC shall not proceed.”

The 24 petitions, now grown to 26, arise from allegations made by Delhi Vyapar Sangh against Amazon and Flipkart for violating the Competition Act, 2002. The allegations involve exclusive arrangements, deep discounts, and preferential listings related to the sale of mobile phones on their platforms. These petitions are spread across High Courts in Delhi, Punjab and Haryana, Karnataka, and Allahabad.

Attorney General R Venkataramani and Additional Solicitor General N Venkataraman, representing CCI, informed the Court that the anti-trust regulator had no objection to the transfer of cases to Karnataka High Court. However, lawyers for Amazon and other respondents argued that certain parties had not been impleaded in the petitions, prompting the Court to direct the inclusion of all relevant parties.

Senior Advocates Abhishek Manu Singhvi, Neeraj Kishan Kaul, and Sajan Poovayya represented the respondents, while advocates Abir Roy, Vivek Pandey, and Aman Shankar appeared for Vyapar Sangh.

The Supreme Court adjourned the matter to January 6, 2025, and emphasized that a final transfer order could only be passed after hearing all involved parties.

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