Amazon-Flipkart Investigation: Supreme Court Orders Transfer of All Pending Cases to Karnataka High Court
The Supreme Court on Monday directed that all pending petitions concerning the investigation into e-commerce giants Amazon and Flipkart by the Competition Commission of India (CCI) should be transferred to the Karnataka High Court for further hearing. This significant decision was made during the hearing of a plea filed by the CCI, which sought to centralize proceedings in light of the multiple cases pending across various High Courts.
A bench comprising Justice Abhay S Oka and Justice Manmohan issued notice on the petition filed by the CCI. The competition regulator had requested the transfer of all cases related to its order for an investigation, which are currently pending before the Allahabad, Madras, Telangana, Punjab and Haryana, Delhi, and Karnataka High Courts, to either the Supreme Court or the Delhi High Court. However, after hearing the arguments, the bench opined that all cases should instead be consolidated in the Karnataka High Court. The court has scheduled January 6, 2025, as the next date for the hearing.
The issue stems from the CCI’s directive to investigate alleged anti-competitive practices by Amazon and Flipkart. The investigation was initiated following a complaint filed by the Delhi Vyapar Mahasangh, a trade body representing several local traders dealing primarily in smartphones and electronic accessories. The complainants accused the e-commerce platforms of engaging in unfair trade practices, such as offering deep discounts and forming exclusive partnerships with select sellers on their platforms, thus adversely impacting smaller traders and creating a non-level playing field.
In response to the CCI’s investigation order, both Amazon and Flipkart moved separate petitions in multiple High Courts across the country to challenge the inquiry. The e-commerce giants argued against the CCI’s jurisdiction and the validity of the investigation, which led to the matter being fragmented across various courts. This prompted the CCI to approach the Supreme Court, seeking to streamline the legal proceedings by transferring all related cases to a single court for consistent adjudication.
During the hearing, the Supreme Court noted the multiplicity of petitions across different High Courts and emphasized the need to consolidate them to ensure uniformity and efficiency in handling the case. “Issue notice. Prima facie, we are of the view that all the cases pending in various High Courts should be transferred to the Karnataka High Court for hearing,” observed the bench. The court also instructed the Karnataka High Court to refrain from proceeding further on the petitions filed by Amazon and Flipkart until the Supreme Court’s next scheduled hearing in January 2025.
Attorney General R. Venkataramani, representing the CCI, submitted that the commission would have no objection to the matter being heard by the Karnataka High Court. He supported the court’s decision to consolidate the cases, highlighting that a single forum would expedite the resolution of the matter and prevent unnecessary delays arising from parallel proceedings.
The Supreme Court’s decision holds particular significance in the broader context of e-commerce regulations in India. Over the past few years, Amazon and Flipkart have faced growing scrutiny from trade bodies and regulatory authorities, which have accused the platforms of predatory pricing and preferential treatment toward select sellers. Such practices, according to the complainants, undermine fair competition and hurt small businesses that rely on these platforms for their livelihood. The CCI’s investigation aims to address these concerns and ensure compliance with India’s competition laws.
For Amazon and Flipkart, this development marks a key juncture in their legal battle against the regulatory probe. The transfer of all cases to the Karnataka High Court may bring a more streamlined approach to their challenge against the investigation. Both companies have consistently denied allegations of anti-competitive practices, asserting that their operations are in compliance with Indian laws and benefit millions of consumers and sellers across the country.
With the Supreme Court’s directive, the Karnataka High Court is now poised to become the central forum for adjudicating this high-profile case. The decision is expected to bring greater clarity and efficiency to the proceedings while addressing the concerns raised by stakeholders. The outcome of this legal battle will have far-reaching implications for e-commerce regulation in India, particularly as the sector continues to grow rapidly and attract greater oversight from policymakers and regulatory bodies.
The next hearing scheduled for January 6, 2025, will be closely watched by industry players, trade bodies, and legal experts alike. Until then, the focus will remain on the arguments presented before the Karnataka High Court as it takes up the petitions filed by Amazon and Flipkart, as well as the CCI’s investigation into their alleged practices.
