Supreme Court says CCI probe against Amazon, Flipkart will continue

The Competition Commission ordered the investigation in 2020 against the companies for allegedly promoting select sellers on their platforms.

The Supreme Court on Monday said an antitrust investigation into business practices of Amazon.com Inc and Walmart's Flipkart must continue, rejecting demands of the two e-commerce giants to put them on hold.

The Competition Commission of India (CCI) ordered the investigation in 2020 against the companies for allegedly promoting select sellers on their e-commerce platforms and using business practices that stifle competition. The companies deny any wrongdoing and have repeatedly tried to mount legal challenges against the investigation.

A three-judge Supreme Court bench, led by Chief Justice N V Ramana, said companies like Amazon and Flipkart should volunteer for such investigations.

"We expect organisations like Amazon and Flipkart, big organisations, they have to volunteer for inquiry and transparency. We expect that and you don't even want (an) inquiry," Justice Ramana told the court, according to Reuters. "You have to submit and inquiry has to be conducted."

"We are merely allowing an extension of four weeks for Amazon and Flipkart to reply to CCI’s notice,” said the court, according to CNBC-TV18.

The decision is a setback for both Amazon and Flipkart as the Supreme Court appeal was seen as the last legal recourse to block the CCI pressing on with its investigation.

The companies are also grappling with the prospects of tougher e-commerce regulations and investigations by the country's financial-crime agency for alleged violation of foreign investment laws.