Supreme Court transfers pleas on anti-competitive practices by Amazon, Flipkart to Karnataka High Court for adjudication

New Delhi: The Supreme Court on Monday transferred all the petitions related to alleged anti-competitive practices by Amazon and Walmart's Flipkart e-commerce platforms to the Karnataka High Court’s single-judge bench for adjudication.

A bench of Justices Abhay Oka and Pankaj Mithal directed the transfer of the cases after all the companies agreed to such transfer before the High Court.

The court had earlier asked Attorney General R Venkatramani to take instructions from the Competition Commission of India (CCI) for transferring over two dozen petitions to the Karnataka High Court’s single-judge bench.

The CCI sought transfer of the matter as petitions were pending across various High Courts of Delhi, Punjab and Haryana, Karnataka and Allahabad involving public interest.

It said the inquiry related to e-commerce services offered by two of the major platforms, is of great general importance since if any anticompetitive activity is allowed to continue on these platforms, it harms and affects lakhs if not crores of ordinary people each passing day as these are the ultimate consumers on these platforms.

It said even though the investigation was to be commenced in 2020, it was substantially delayed, in part due to the stay granted in favour of Amazon and Flipkart in the first round of litigation.

"Four years have passed and a final order is yet to be passed in the present case,” the CCI said in its transfer plea.

In 2020, the CCI found prima facie merit in Delhi Vyapar Sangh’s allegations of violations of the Competition Act, 2002 by Amazon and Flipkart relating to sale and purchase of mobile phone submissions.

It alleged that the e-commerce companies indulged in exclusive arrangements, deep discounts and preferential listings in violation of competition law.

The CCI ordered an investigation by the Director General and this was challenged by Amazon and Flipkart. In September, the Karnataka High Court stayed further proceedings against Amazon, prompting all other HCs to pass similar orders.