The Supreme Court has intervened, instructing the Karnataka High Court to resolve the Competition Commission of India’s (CCI) plea seeking the removal of the stay on investigating e-commerce giants Amazon and Flipkart for suspected anti-competitive activities. A bench comprising Justices A M Khanwikar, Dinesh Maheswari, and Sanjiv Khanna directed the CCI to approach the High Court for a resolution.
Proceedings
Solicitor General Tushar Mehta, representing the CCI, clarified that the probe against e-commerce firms was administrative and would not infringe upon any party’s rights. He urged the court to keep the petition pending, citing broader issues involved in the case.
Senior advocate A M Singhvi, representing the e-commerce companies, highlighted the delay of over 200 days in the CCI’s approach to the apex court.
The bench mandated that the High Court address the matter and render a decision within six weeks. It further stipulated that the petition may be reinstated if the High Court fails to provide a verdict within the specified period.
Background
On February 14, the High Court had granted an interim stay on the CCI’s investigation into Amazon and Flipkart.
Amazon had approached the High Court seeking a stay on the CCI’s investigation, while Flipkart had filed a petition to annul the CCI’s directive for a probe into allegations of anti-competitive behavior.
Amazon, in its plea, requested the High Court to annul the CCI’s January 13, 2020 probe order and sought relief based on the case’s circumstances in the interest of justice.
In its petition, Amazon argued that the CCI’s order was issued “without application of mind” and could inflict irreparable damage to the company’s reputation if an investigation proceeded.
The CCI initiated the probe against Flipkart and Amazon in January following complaints from traders’ bodies, including the Delhi Vyapar Mahasangh, whose members include numerous smartphone and accessory traders.
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