Karnataka Excessive Court docket grants interim keep on investigation ordered by CCI in opposition to Amazon, Flipkart


Bengaluru: The Karnataka Excessive Court docket on Friday granted an interim keep on the investigation ordered by the Competitors Fee of India (CCI) in opposition to e-commerce giants Amazon and Flipkart for alleged violations of provisions of competitors legal guidelines.

“The commissions order directing investigation is stayed by the court. It has given eight weeks for the parties to respond,” an advocate related with the case stated.

Amazon on Monday had moved the excessive courtroom in search of a keep on the investigation ordered by the CCI.

In its plea, Amazon sought quashing and setting apart of the CCI’s January 13, 2020 probe order, and had additionally prayed the courtroom to offer aid based mostly on “facts and circumstances of the case in the interest of justice.”

In January, truthful commerce regulator CCI had ordered the probe in opposition to Flipkart and Amazon for alleged malpractices, together with deep discounting and tie-ups with most popular sellers on their platforms.

 Karnataka High Court grants interim stay on investigation ordered by CCI against Amazon, Flipkart

Representational picture. AP

The order adopted a grievance filed by Delhi Vyapar Mahasangh, whose members comprise many merchants dealing in sensible telephones and associated equipment.

In its petition, Amazon contended that the CCI order had been handed “without application of mind” and would trigger irreparable loss/damage to the goodwill/status of the corporate if an investigation is allowed.

It additionally stated the order would trigger “serious prejudice” in opposition to Amazon and its findings are “perverse, arbitrary, untenable” in regulation.

Welcoming the keep, Amazon termed it as a step within the authorized course of.

“Whereas we welcome and respect the choice of the Excessive Court docket of Karnataka, that is only a step within the authorized course of. We’re assured about our compliance, Amazon spokesperson stated in a press release.

The Confederation of All India Merchants (CAIT) has stated it might file an enchantment in opposition to the Excessive Court docket order.

Delhi Vyapar Mahasangh is an affiliate of the CAIT.

Each CAIT and Delhi Vyapar Mahasang hhave determined to file an enchantment in opposition to the order of the Excessive Court docket quickly and each are consulting their respective legal professionals.

In the meantime, the CAIT would push with the Union authorities to hurry up the ED investigation.

On this context, a CAIT delegation would quickly meet Commerce Minister Piyush Goyal and Finance Minister Nirmala Sitharaman, it stated in a press release.

CAIT stated the excessive courtroom has stayed the order for investigation handed by the CCI on the bottom that the ED has already initiated investigation into Flipkart and Amazon’s actions which can be alleged to be in contravention of the FDI coverage.

The courtroom was subsequently of the opinion that FDI violations being within the realm of the ED and the Adjudicating Authority below the FEMA, the case of CCI vs Bharti Airtel would apply to the case and ED must give its report earlier than the CCI may proceed with the matter.

The courtroom additionally famous that whereas the CCI had requested Amazon for its feedback in a earlier case (filed by AIOVA), CCI ought to have additionally referred to as the events within the current matter once they had been made respondents earlier than passing the impugned order, it added.


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