CAIT seeks meeting with CCI head for early probe on Amazon, Flipkart

CAIT which represents 70 million traders, said it is learnt that CCI has transferred midway, the officer who was investigating Amazon, which has irked the country's business community

The Confederation of All India Traders (CAIT), which represents about 70 million traders, said it has sought a meeting with Ashok Kumar Gupta, Chairman Competition Commission of India (CCI) to impress upon the need of early investigation and consequent action against e-commerce firms Amazon and Flipkart in the matter of predatory pricing, capital dumping through the preferred sellers through the vertical arrangement. CAIT said it is learnt that CCI has transferred the officer midway who was investigating Amazon, which has irked the business community of the Country.

On Febriary 13, 2020, CAIT said that CCI had ordered its Director General (Investigation) for investigation against Flipkart and Amazon and submit the report within 60 days. However, both Amazon and Flipkart challenged that order in the High Court of Karnataka and got it stayed.

CAIT said Karnataka High Court vide its order dated July 23, 2021 passed the final order in favour of CCI and against Amazon and Flipkart and allowed the investigation to continue. It said the Supreme court also did not find any merit in the challenge by Amazon and Flipkart and while dismissing their SLP (special leave petition) on 9-08-2021 had ordered the investigation to continue.

“While we are eagerly waiting for an early closure of the investigation, to our utter surprise they have learnt from reliable sources that CCI has decided to change the investigating officer of the case, Sh Rajinder Kumar, that in our view will further derail the investigation and will cause further hardship to the small traders,” said CAIT National President B C Bhartia and Secretary General Praveen Khandelwal. “In our opinion, a change of investigating officer at such a crucial stage of the investigation will send the wrong signal and show the Indian authorities in a poor light that they are playing under the pressure of Amazon and Flipkart. Therefore, instead of making any change, CCI must close his investigation asap (as soon as possible)."

Therefore, CAIT along with its delegation has sought a meeting with Chairman CCI to appraise him about the anger and anguish of small retailers on the delay in investigation and subsequent action against Amazon and Flipkart. It alleged that the anti-competitive behaviour of these e-commerce firms has led to the closure of millions of Kirana shops and taken away their livelihood and the latest development which may derail the investigations.