E-commerce giants Flipkart and Amazon have dealt a big blow in the Supreme Court. The apex court dismissed the petitions filed by these companies, seeking to stop the Competition Commission of India (CCI) investigation into their internal business practices. The bench allotted four weeks to attend the trial.
A three-judge bench headed by Chief Justice N V Ramana said that challenging the inquiry is like wanting a notice before the registration of an FIR under the criminal law and asked the e-commerce giants to submit themselves to the probe by the CCI.
The CCI has taken note of allegations made by businesses in India that Amazon and Flipkart are violating market competition laws and only promoting certain sellers. In January last year, it ordered an inquiry into these companies. However, Amazon and Flipkart have denied the allegations. They have approached the Karnataka High Court alleging that the CCI had investigated with no evidence. However, there was a setback. On July 23, the Karnataka High Court dismissed the petitions of e-commerce companies as inadmissible.
While these companies have approached the Supreme Court challenging the High Court judgment, here too there has been a disappointment. The court rejected the companies’ request to stay the CCI trial.
“We expect big organisations like Amazon and Flipkart to offer themselves for the inquiry, and you do not want that. You have to submit and enquiry has to be permitted,” said the bench, which also comprised justices, Vineet Saran and Surya Kant.