SC transfers CCI's Amazon-Flipkart antitrust probe case to Karnataka HC

The Supreme Court has transferred all writ petitions pertaining to the Competition Commission of India's (CCI) probe into alleged anti-competitive practices by eCommerce giants Amazon and Flipkart to the Karnataka High Court. These cases, previously pending across multiple High Courts, will now be heard together in Karnataka.

The CCI had filed a transfer petition in the Supreme Court, prompting the bench of Justices Abhay Oka and Ujjal Bhuyan to note that the writ petitions involve the same subject matter as a case already being heard by a single judge of the Karnataka High Court. The bench directed that any future petitions on the issue will also be transferred to the Karnataka High Court.

Attorney General R. Venkataramani represented the CCI, while Senior Advocate Abhishek Manu Singhvi, appearing for certain respondents, stated that his clients did not object to the transfer. Considering that the single judge hearing the petitions is currently sitting at the Dharwad bench, the Court allowed him to convene at the principal bench to handle both the pending and transferred cases.

What is the CCI antitrust probe?

The controversy originated in 2019 when the Delhi Vyapar Mahasangh, a traders' association, filed a complaint with the CCI alleging that Amazon and Flipkart gave preferential treatment to select sellers. The association accused the companies of engaging in exclusive arrangements, deep discounts, and preferential listings, claiming these practices violated competition law and disadvantaged other sellers.

In January 2020, the CCI initiated an investigation under the 2002 Competition Act. The probe revealed that Amazon and Flipkart violated antitrust laws by favouring select sellers and collaborating with smartphone manufacturers like Samsung and Vivo for exclusive online launches, restricting market access. 

Litigation ensued, with Amazon and Flipkart challenging the investigation. In June 2021, a single judge of the Karnataka High Court dismissed these petitions, a decision upheld by a division bench, which observed that if the companies had not violated the law, they should not evade the inquiry. The Supreme Court also refused to interfere in the CCI's preliminary investigation in August 2021. The commission concluded its findings in August 2024.

Following the CCI's findings, Amazon and Flipkart-associated sellers filed 26 writ petitions across multiple High Courts, including Karnataka, Punjab and Haryana, Delhi, Madras, Allahabad, and Telangana, challenging various aspects of the investigation. To consolidate these cases and prevent delays, the CCI approached the Supreme Court with a transfer petition, seeking to move all matters to a single court.

Initially, on December 13, 2024, a Supreme Court bench comprising Justices Abhay Oka and Pankaj Mithal declined to transfer the cases to the Delhi High Court or a division bench of the Karnataka High Court. However, on December 16, the Court indicated its intent to transfer all petitions to the Karnataka High Court, staying proceedings in the interim. The Attorney General for India informed the Court that the CCI had no objection to the Karnataka High Court hearing the cases, provided there was a uniform timeline for adjudication.

The transfer aims to avoid conflicting rulings and ensure a swift resolution of the long-standing dispute. The hearing's outcome could significantly impact India's e-commerce sector, already under intense scrutiny.