Supreme Court backs moving cases against Amazon, Flipkart to Karnataka High Court

The Supreme Court on Monday expressed its inclination to transfer petitions filed by e-commerce giants Amazon and Flipkart, challenging a Competition Commission of India (CCI) probe order, to the Karnataka High Court for adjudication.

The petitions relate to allegations of malpractices, including deep discounting and preferential treatment of certain sellers on their platforms.

A bench comprising Justices Abhay S Oka and Manmohan issued a notice on a plea filed by the CCI, which sought to centralise all pending petitions in either the Supreme Court or the Delhi High Court. “Prima facie, we are of the view that all cases, which are pending in various high courts, should be transferred to Karnataka High Court for hearing,” the bench observed, adding that the matter would next be heard on January 6, 2025.

The court, however, instructed the Karnataka High Court to refrain from proceeding with the petitions filed by Amazon and Flipkart until further notice. During the hearing, Attorney General R Venkataramani stated that the CCI had no objection to the Karnataka High Court handling the matter.

The CCI’s plea sought to consolidate cases currently pending across the high courts of Allahabad, Madras, Telangana, Punjab & Haryana, Delhi, and Karnataka. The regulator initiated the probe following a complaint by the Delhi Vyapar Mahasangh, a traders’ body representing businesses dealing in smartphones and accessories.

The complaint alleged that Amazon and Flipkart engaged in anti-competitive practices, such as offering deep discounts and partnering with select sellers to the detriment of other market participants. In response to the CCI’s investigation order, both e-commerce companies filed separate petitions across multiple high courts, challenging the validity of the probe.