Flipkart files separate petition challenging CCI probe, jurisdiction

Walmart-owned Flipkart has filed a petition in Karnataka supreme court , in Bengaluru, in the week legally challenging an investigation probe by India’s antitrust regulator against ecommerce companies over allegations of predatory pricing and preferred treatment to certain sellers.

Flipkart’s petition, reviewed by Mint, comes just two weeks after Amazon's petition against a January order by the Competition Commission of India (CCI) launching a probe over complaints that the e-commerce platforms had misused their dominant positions. The Karnataka supreme court on 14 February granted a stay into the probe and granted all parties around eight weeks to file their views with court after which the court will resume hearing the case.

Flipkart, which has been a respondent in the Amazon-CCI case, has now filed a petition in Karnataka high court questioning CCI's investigation probe. Last week, the court had ordered an interim stay on the probe.A Flipkart spokesperson on Friday it has filed a petition in court.

“The High Court of Karnataka has issued an interim stay of the CCI investigation. We are a party to the CCI order and a respondent in Amazon’s writ against the order. Given this position and the High Court Stay, as a procedural matter, we have filed a writ," the spokesperson said.

The petition is expected to be heard shortly.

"...The order has directed an investigation without making a determination of existence of essential jurisdiction and during a pre-determined manner by treating allegations of abuse of dominance as an "anti-competitive' agreement," Flipkart's petition said.

It adds that CCI cannot examine matters that directly fall under FEMA, especially when the enforcement directorate (ED) is examining the very same issues."...To act on the information submitted by the informant whose credentials are unsure and motives questionable is totally unfair," Flipkart said in its filing. “By passing impugned order, CCI is contradicting its own earlier orders and precedents and can't change its stand from time to time."

The petition is against the 14 January CCI order directing a probe into Flipkart and its rival, Amazon to investigate allegations of deep discounting, preferred sellers and exclusive launches of specific smart phone brand that might have an impact on competition.

The Delhi Vyapar Mahasangh (DVM), a gaggle representing small and medium businesses, in its complaint to the CCI had alleged that ecommerce platforms were funding discounts that was having an adverse affect on small businesses.