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Indian Court Suppresses Amazon, Wal-Mart Flipkart Bid to Stop Antitrust Investigation




July 23, 2021

A court in India on Friday dismissed an appeal by Inc and Walmart’s Flipkart to bring a major setback to US companies in key markets and stagnate antitrust investigations into their business practices.


The Competition Commission of India (CCI) investigated last year after a retailer in a physical store alleged that U.S. companies were accustomed to competitive business practices by promoting selected sellers on e-commerce platforms. I ordered.

The investigation was suspended for more than a year after the company disputed this, denied fraud and claimed that the CCI had no evidence, but the court allowed the investigation to continue in June. .. On Friday, the High Court in southern Karnataka dismissed the appeal of a US company.

While reading the court ruling, the two judges Bench said, “To the extent of my imagination, the investigation cannot be abandoned at this stage. The appeal is that the actions initiated by the CCI do not achieve finality. It is nothing but an attempt to guarantee. ” .. “The appeal has no merit and deserves to be dismissed.”

Both companies are likely to appeal the decision of the Supreme Court of India, according to people familiar with the case. Amazon did not immediately respond to the request for comment.

Flipkart said in a statement that it would consider court orders, adding that it complies with Indian law.

Salvada Regal’s Abilroy, who filed antitrust proceedings against Amazon and Flipkart on behalf of the trader group, said the court’s ruling “CCI investigations should continue quickly.”

CCI’s investigation is the latest setback for Amazon and Flipkart, with prospects of criticism from retailers in stores that it is circumventing Indian law by tightening e-commerce regulations and creating complex business structures. Is working on.

The two companies face several allegations in the proceedings, including the exclusive launch of mobile phones, the promotion of carefully selected sellers on their websites, and significant discount practices that intensify competition.

In February, a Reuters study based on Amazon’s documents showed that a small group of sellers had been incentives for years and used them to circumvent Indian law. Amazon has stated that it will not give preferential treatment to sellers.

Trade Minister Piyush Goyal last month filed a legal objection to the U.S. e-commerce giant, saying he did not follow the CCI investigation, saying, “If they have nothing to hide … why they don’t respond to the CCI Is it? “

Amazon faces another CCI challenge, with Watchdog accusing it of hiding the facts and making false submissions when seeking approval for a 2019 deal with an Indian company, Reuters said. Reported on Thursday.

© Thomson Reuters 2021 All rights reserved.

Indian Court Suppresses Amazon, Wal-Mart Flipkart Bid to Stop Antitrust Investigation

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