• State court dismissed Amazon and Flipkart’s bid to quash CCI investigation
• E-commerce giants fighting tougher regulations to their operations in India
Walmart’s Flipkart has appealed to India’s Supreme Court against a state court’s decision that allowed an antitrust probe into the e-commerce firm and its rival Amazon.com Inc to continue, sources told Reuters on Tuesday.
The High Court in Karnataka state last week dismissed cases filed by Amazon and Flipkart which sought to quash the Competition Commission of India’s (CCI) 2020 investigation. The companies denied any wrongdoing, but the court said “they should not feel shy in facing an inquiry”.
On Tuesday, Flipkart filed an appeal in the Supreme Court, challenging that decision, three people familiar with the proceedings said.
Further details of the challenge, or Flipkart’s pleas, were not immediately clear. The Supreme Court website showed Flipkart had filed a case against the CCI and other parties, without giving more details.
Amazon is also expected to file an appeal against the High Court ruling, according to people familiar with the case.
The CCI investigation is the latest setback for Amazon and Flipkart, which are grappling with prospects of tougher e-commerce regulations and accusations from brick-and-mortar retailers that the companies circumvent Indian law by creating complex business structures.
The companies face several allegations in the case, including exclusive launches of mobile phones, promotion of select sellers on their websites and deep discounting practices that drive out competition.
- Reporting by Reuters