India's antitrust body seeks court hearing against retail giants

NEW DELHI, India: India's antitrust body has asked the Supreme Court to hear legal challenges to an investigation of Amazon and Walmart's Flipkart e-commerce platforms.

The body says those challenges, filed by Samsung, Vivo, and others at Indian high courts, aim to scuttle the probe.

On December 3, the Competition Commission of India (CCI) asked the court to consolidate 23 lawsuits filed by Samsung, Vivo, and several Amazon and Flipkart vendors to speed up the resolution of an ongoing investigation. The lawsuits aim to block the investigation, which began in 2020 and has faced repeated delays.

Amazon declined to comment, and Flipkart, Samsung, Vivo, and the CCI did not respond to inquiries.

The investigation is a significant challenge for Amazon and Flipkart, especially as India's e-commerce market is projected to grow from nearly US$60 billion in 2023 to over $160 billion by 2028.

In August, the CCI's investigation unit found that Amazon and Flipkart violated antitrust laws by favoring specific sellers on their platforms. It also alleged that smartphone companies like Samsung and Vivo broke the law by partnering with the platforms to launch products exclusively online.

Since then, vendors and companies involved have filed nearly two dozen lawsuits across five Indian high courts, claiming the investigation lacked proper procedure. The CCI argued these lawsuits are an attempt to block and disrupt the investigation and could harm its ability to proceed effectively.

Smaller retailers have long criticized Amazon and Flipkart for offering deep discounts and prioritizing certain sellers, which they say harms their businesses. Both companies deny any wrongdoing.

A 2021 Reuters report based on Amazon's internal documents revealed that the company had been giving preferential treatment to a small group of sellers for years, bypassing Indian regulations.

The Supreme Court is expected to hear the CCI's request to combine the lawsuits this week.