Amazon, Flipkart say 'will extend full cooperation' after SC refuses to halt CCI probe

E-commerce majors Amazon and Flipkart on Monday said that they will extend full cooperation to the Competition Commission of India in the antitrust probe. Their statement comes after the Supreme Court of India refused to entertain their pleas against the probe into alleged violations of the competition laws. The online shopping giants had approached the top court, challenging Karnataka High Court's order to allow CCI to continue its investigation for alleged violations of the competition laws.

A three-member apex court bench headed by Chief Justice NV Ramana on Monday refused to halt the anti-trust probe against Amazon and Flipkart saying that challenging the enquiry is like wanting a notice before an FIR. The panel asked both companies to submit themselves to the CCI probe.

“We expect big organisations like Amazon and Flipkart to offer themselves for the inquiry and you do not want that. You have to submit and enquiry has to be permitted,” the top court said.

Speaking to PTI, an Amazon spokesperson said, "Amazon has a high bar on compliance and we comply with all applicable laws. We will extend full cooperation to the CCI investigation."

Walmart-backed Flipkart said that the company hasn't received the order yet, but respected the Supreme Court's decision. We are in compliance with applicable Indian laws and will cooperate with the investigation," the spokesperson added.

CCI Probe against Amazon and Flipkart

The CCI's January 2020 investigation order followed a complaint by Delhi Vyapar Mahasangh who alleged that the practice of launching mobile phone exclusively by two companies have driven them out of competition.

On January 13, last year, CCI ordered a probe against Amazon and Flipkart for alleged malpractices, including tie-ups with preferred sellers and deep discounting, following which the e-commerce giants moved to the high court to scrap the probe order. The Karnataka High Court, however, dismissed the case, following which both the companies moved to the Supreme Court.