The nation’s top court, though, said that prima facie all antitrust cases involving Amazon, Flipkart and their affiliated entities should be transferred to the Karnataka High Court.
“Parties which are represented today (read: Monday), take notice. We permit petitioners to add parties. Amended cause title shall be filed in two days,” a bench comprising Justices Abhay S. Oka and Manmohan said, while noting that two more cases had reached the court in the current case.
Attorney general R Venkataramani told the apex court that the Competition Commission of India (CCI) does not have any objection if the cases was heard by the Karnataka High Court.
The case will be heard next on January 6.
The top court on Friday had refused to transfer 24 petitions relating to alleged anti-competitive practices by Amazon and Walmart’s Flipkart ecommerce platforms to itself or the Delhi High Court. Of these 24 cases, 12 are being heard by Karnataka High Court.
Discover the stories of your interest
The Supreme Court had then asked the Attorney General to take instructions from CCI by Monday for transferring all cases to a single judge bench of the Karnataka High Court.It had observed that the anti-trust body could not be given special treatment by directing the petitions to be heard directly by the division bench of the Karnataka HC instead of first having the benefit of the single judge bench’s decision.
The CCI, which would prefer bunching together of the pleas in the Delhi High Court, should the apex court choose to consolidate the pleas under one high court, believes doing so will “minimise any scope of a conflicting ruling on this issue among different high courts.”
“The underlying subject matter of inquiry before the petitioner, ie ecommerce 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,” the appeal stated.
“It is important to note that 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. Four years have passed, and a final order is yet to be passed in the present case,” the CCI had said in its transfer plea.
In 2020, the CCI had found prima facie merit in Delhi Vyapar Sangh’s allegations about violations of the Competition Act, 2002, by Amazon and Flipkart relating to sale and purchase of mobile phones. It alleged that the online retailers indulged in exclusive arrangements, deep discounting and preferential listings in violation of competition law.
The CCI had ordered a probe by the Director General, which was challenged by Amazon and Flipkart. In September, the Karnataka High Court stayed further proceedings against Amazon, prompting all other high courts to pass similar orders.
