Amid the ongoing festive season sale on Amazon and Flipkart, many online sellers have filed cases for violation of anti-trust rules. The troubles for e-commerce platforms are going to increase due to violations of CCI's anti-trust rules. Three online sellers working on Walmart-owned Flipkart have sued Indian antitrust watchdog CCI in an investigation which found That Flipkart and rival Amazon have violated competition laws.
Allegation of giving preference in listing
According to a Reuters report, an investigation into anti-trust rules against both e-commerce platforms Amazon and Flipkart was conducted in August 2024, in which it was found that some online sellers and smart brands present on the platform had disrupted the competition. The rules have been violated. Investigation found that these sellers and smartphone brands have been given priority in some listings on the e-commerce platform, which is contrary to the rules.
Flipkart and Amazon are the country's largest e-commerce platforms, on which millions of customers purchase products every day. Three online sellers have filed submissions in the Karnataka High Court to “set aside” the investigation report and halt the Competition Commission of India (CCI) process in an attempt to quash the crucial proceedings, Reuters reports.
Delay in investigation process
However, both these leading platforms Amazon and Flipkart have denied any wrongdoing. The vendors of these platforms say in the lawsuit that the investigation process, which first began in 2020, was intentionally delayed. All three sellers on Flipkart – CIGFIL Retail, Wishery Online and Xonique Ventures – have argued in their lawsuits that they were called to submit data to help the authorities during the investigation, but were later named as accused. Which goes against due process, court papers show.
All three online sellers said that the alleged investigation… is arbitrary, opaque, unfair. The matter may be heard next week. At present, no comment has been made by Flipkart and CCI regarding this matter. Last week, an Amazon seller also filed a similar case against CCI.
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