CCI enlists attorney general to clear path for Amazon, Flipkart antitrust probes

New Delhi: The Competition Commission of India (CCI) has engaged attorney general R Venkataramani, the country’s highest-ranking law officer, to fight its case against various current and former online sellers of Amazon and Flipkart, including Cloudtail India Pvt Ltd, Appario Retail Pvt Ltd and Samsung India Electronics Pvt Ltd, two people informed about the development said. 

These companies have filed writ petitions in various high courts, challenging the CCI’s antitrust probe against the two e-commerce giants, which was later expanded to include the sellers as well.

CCI moved the Supreme Court last week, seeking to combine two dozen writ petitions filed in the high courts of Karnataka, Punjab and Haryana and Madras by current and former sellers on Amazon and Flipkart and transfer them to the apex court or the Delhi High Court to avoid conflicting judgements.

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One of the people cited above said, “The AG is likely to mention this case before a bench led by Chief Justice of India Sanjiv Khanna so that it can be taken up early.” Engaging the AG, a constitutional functionary, to represent CCI in the Supreme Court shows the significance of the case and the priority accorded to resolving it, this person added.

‘Third party’ changed to ‘opposite party’

Digital-economy firms increasingly find themselves in the regulatory spotlight, with the CCI taking note of their growing market presence and strong network effects.

CCI believes the slew of writs filed by the sellers are meant to restrict its investigative powers. The sellers, however, told the high courts that their status as ‘third parties’ when CCI started its probe into alleged anti-competitive practices by Amazon and Flipkart four years ago was changed to ‘opposite party’ in CCI’s July 2024 order based on its director general’s investigation, without any prior notice or hearing. CCI contested this argument, but the three high courts ruled in favour of the companies and halted CCI’s probe.

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The regulator told the Supreme Court in its petition that the investigation had already been delayed once, after Amazon and Flipkart secured a stay in the first round of litigation, before the apex court allowed CCI to go ahead with the probe. Because of these cases, the final order is yet to be passed, the regulator said.

CCI sought a ruling from the Supreme Court on what it described as a “substantial question of law” – whether its director general can investigate a ‘third party’ who was not specifically identified as an ‘opposite party’ when the investigation was ordered based on a first-impression assessment of the case. The writ petitions, CCI said in its petition to the Supreme Court, are causing serious prejudice and affecting its statutory functions.

Queries emailed to CCI, Amazon, Flipkart and Samsung India on Monday remained unanswered.

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