The Supreme Court (SC) has rejected a plea moved by e-commerce giants Amazon and Flipkart that seeks to stall the launch of an investigation pertaining to their business practices. The two companies must face the enquiry by the Competition Commission of India (CCI) for alleged anti-competition agreements, the Apex Court observed.
As big e-commerce organizations the two companies should volunteer to participate in the investigation instead of objecting to it, the Apex Court bench led by Chief Justice of India (CJI) NV Ramana said.
The petition was initially moved in the Karnataka High Court (HC), but was dismissed on similar grounds, following which the two e-commerce giants approached the Supreme Court.
Read also: Volunteer for inquiry: SC refuses to stop CCI probe against Amazon, Flipkart
The probe was ordered by the CCI last year following complaints by brick-and-mortar retailers, who accused the two US-based companies of promoting select sellers, and using anti-competition practices to stifle the competition.
The two companies are facing allegations like deliberate deep discounting for killing the competition, and promotion of select sellers, amongst others.
Earlier, Union Commerce Minister, Piyush Goyal had hit out at the two US-based firms for challenging the investigation, and for not cooperating with the agencies concerned.
Notably, Amazon has also been accused concealing facts and making false submissions in 2019 when it was seeking approval from Indian authorities for inking a deal with an India-based company.
Read also: Flipkart urges SC to restrain CCI probe
The investigation has come as a major setback for these companies who already grappling with the prospect of complying with tougher e-commerce norms. These companies have, however, regularly denied any wrongdoing and have been making regular attempts to derail the approaching investigation.
