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Flipkart Sellers Sue Indian Antitrust Watchdog Over Competition Law Violation Findings

By  |  September 29, 2024

Three online sellers on Walmart-owned Flipkart have filed lawsuits against India’s antitrust authority, seeking to halt an investigation that found they, along with Flipkart and rival Amazon, breached competition laws. The lawsuits, seen in court filings and reported by Reuters, were submitted to the High Court of Karnataka in an attempt to block further legal action.

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    The legal move comes after an antitrust probe concluded in August, finding that Flipkart, Amazon, certain smartphone brands, and specific sellers violated Indian competition rules. According to Reuters, the investigation alleged that these companies provided undue preference to certain online sellers and gave priority to specific product listings, thus harming smaller businesses and competitors.

    Flipkart, a leading e-commerce player in India and a direct competitor to Amazon, is now facing growing legal challenges from both sellers on its platform and regulators. The three sellers—CIGFIL Retail, Wishery Online, and Xonique Ventures—have argued that the antitrust inquiry conducted by the Competition Commission of India (CCI) was unjust. According to Reuters, the sellers claim they were initially asked to provide data to assist the investigation, only to later be named as accused parties without due process.

    Read more: Xiaomi Requests CCI Retract Sensitive Report in Flipkart Antitrust Case

    The sellers have criticized the investigation as being “arbitrary, opaque, and unfair,” per their court submissions, and are seeking to have the investigation report set aside. The lawsuits will likely be heard in court next week.

    This antitrust investigation was initiated in 2020 following complaints from the Confederation of All India Traders, which represents brick-and-mortar retailers. They accused Amazon and Flipkart of exploiting their dominant positions in the market by favoring certain sellers and manipulating product listings. Both e-commerce giants have denied any wrongdoing.

    If the lawsuits succeed, they could delay the overall investigation, which has already been closely watched by Indian regulators and the global e-commerce industry. The case is seen as a critical moment for how competition laws are enforced in India’s rapidly growing digital marketplace.

    Source: Reuters