A smartphone with a Flipkart logo is seen in front of the displayed Amazon logo in this illustration taken, on July 30, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
NEW DELHI: Three online sellers operating on Walmart-owned Flipkart have sued the Indian antitrust watchdog over an investigation which found they, Flipkart and rival Amazon breached competition laws, according to court filings seen by Reuters.
The filings come after antitrust investigations concluded in August found Amazon and Flipkart, some of their sellers and smartphone brands, violated local competition laws by giving undue preference to select online sellers and prioritising certain listings, Reuters reported.
Flipkart is one of India’s biggest eCommerce players and rivals Amazon.
In an effort to quash the critical proceedings, the three sellers on the platform made submissions in the High Court of Karnataka to set aside the investigation report and put the process of the Competition Commission of India (CCI) on hold.
Lawsuits from sellers of Amazon and Flipkart can potentially delay the investigation process which first started in 2020, and was triggered after brick-and-mortar retailers of the Confederation of All India Traders complained to the watchdog.
Amazon and Flipkart deny any wrongdoing.
Three of Flipkart sellers – Cigfil Retail, Wishery Online, Xonique Ventures – in their lawsuits argue that during the investigation they were called to submit data to help officials, but were later named as accused, which is against due process, court papers show.
“The alleged investigation is arbitrary, opaque, unfair,” the sellers argued in three separate court filings, which will come up for hearing likely this week.
Flipkart and the CCI did not immediately respond to a request for comment.
Reuters could not immediately reach the three sellers, whose filings are being reported for the first time.
Last week, a former Amazon seller also sued the CCI and obtained an interim injunction to block the investigation from proceeding. Its court filing – which Reuters has seen – argued the CCI did not give notice before making it an accused in the case.
According to a report for news site Business Standard, the CCI’s report on Amazon also said the Indian units of five companies – Samsung, Xiaomi, Motorola, Realme and OnePlus – were “involved in the practice of exclusive” phone launches in “collusion” with Amazon and its affiliates, breaking competition law.
In Flipkart’s case, the CCI report said the Indian units of Samsung, Xiaomi, Motorola, Vivo, Lenovo and Realme conducted similar practices. — Reuters
