In a significant move, the Supreme Court of India on Monday centralized all legal challenges to the Competition Commission of India’s (CCI) anti-trust investigation into e-commerce giants Amazon and Flipkart. The court directed that these cases be transferred to the Karnataka High Court for collective adjudication and urged the court to resolve the matter without delay.
Supreme Court’s Unified Approach to Speed Up Proceedings
A bench comprising Justices Abhay S. Oka and Ujjal Bhuyan issued the order, responding to a transfer petition filed by the CCI. The petition aimed to consolidate cases scattered across multiple high courts, including Delhi, Madras, Punjab and Haryana, Telangana, and Allahabad, to avoid procedural delays in the investigation.
“It will be appropriate if all the petitions related to the same issue are transferred to the Karnataka High Court. These petitions shall be heard along with the writ petition already pending there. Let the High Court take up all the matters as expeditiously as possible,” the bench stated.
The court further requested the Chief Justice of the Karnataka High Court to consider relocating the single judge currently handling the case from the Dharwad bench to the principal bench in Bengaluru for operational efficiency.
Next Steps and Future Cases
The Karnataka High Court is scheduled to hear the consolidated cases on January 15, 2025. The Supreme Court also clarified that any similar petitions filed in the future before other high courts would automatically be transferred to the Karnataka High Court for consideration.
“A copy of this order shall be immediately forwarded to the registrar general of the Karnataka High Court, who will place it before the single judge presiding over the cases,” the Supreme Court directed.
Background of the Anti-Trust Probe
The CCI initiated its anti-trust investigation following complaints from the Delhi Vyapar Mahasangh, which accused Amazon and Flipkart of violating provisions of the Competition Act, 2002. The complaints included allegations of:
- Exclusive agreements with sellers
- Deep discounting practices
- Preferential listing of certain products
In January 2020, the CCI’s preliminary findings raised concerns about these practices, prompting further inquiries. However, Amazon and Flipkart challenged the probe, alleging procedural lapses, such as the alteration of their status from third parties to opposite parties without proper notification or hearings.
Litigation Across Jurisdictions and Supreme Court’s Intervention
The CCI, represented by Attorney General R. Venkataramani, highlighted how litigation in multiple high courts had delayed the investigation. He stated that various courts had issued stay orders, stalling the inquiry and preventing timely action on alleged anti-competitive practices.
During earlier hearings, the Supreme Court emphasized that the appropriate venue for these cases was the Karnataka High Court, where significant progress had already been made in related proceedings. It dismissed CCI’s request to transfer the cases directly to the Supreme Court, underscoring the need for judicial consistency and efficiency.
E-Retailers’ Objections and CCI’s Defense
Senior advocates representing Amazon and Flipkart, including Abhishek Manu Singhvi, Mukul Rohatgi, and Sajan Poovayya, opposed the transfer petition. They accused the CCI of “forum shopping” and argued that the Karnataka High Court had extensively heard 12 related cases, with proceedings at an advanced stage.
On the other hand, the CCI argued that delaying the investigation would harm millions of consumers and affect public interest. “The underlying subject matter of inquiry concerns public interest and raises substantial questions of law,” the CCI stated in its petition.
Impact of Supreme Court’s Decision on Consumers and the E-Commerce Landscape
This legal battle comes at a crucial time for India’s e-commerce industry, which is experiencing rapid growth but faces scrutiny over its business practices. The Supreme Court’s decision to centralize the cases aims to ensure faster resolution of the matter, potentially paving the way for more robust regulatory oversight.
As the Karnataka High Court prepares to hear these cases, the outcome will likely have significant implications for Amazon, Flipkart, and the broader e-commerce ecosystem in India.
