Amazon, CAIT, CCI, Flipkart, order

The judgement allows CCI to continue its investigation against the two marketplaces under Section 3 of the Competition Act which deals with anti-competitive agreements.

In what comes as a blow to e-tailers Amazon and Flipkart, the Karnataka High Court on June 11 dismissed their petition to quash the probe by Competition Commission of India (CCI).

The judgement which was pronounced by Justice PS Dinesh Kumar, single judge, Karnataka High Court allows CCI to continue its investigation against the two marketplaces under Section 3 of the Competition Act which deals with anti-competitive agreements.

However, even as that happened, let’s take a look at some of the key arguments acknowledged by the court as per the 51-page long order:

— Gopal Subramanium, senior advocate appearing for Amazon had submitted that the Competition Act was to foster the competition in the country. An online market place, in fact, promotes competition and cannot be treated as anticompetitive, unless, there is clear and cogent evidence to that effect.

—  Udaya Holla and Dhyan Chinnappa, senior advocates appearing for Flipkart said that if a seller chooses to sell exclusively on Flipkart’s market place, it is his/her prerogative and Flipkart cannot be held responsible.

— The Competition Commission of India stated that the informant has alleged that petitioners have entered into vertical agreements with ‘preferred sellers’ which has led to foreclosure of ‘nonpreferred sellers’ from the online marketplaces.

— The commission also argued that exclusive agreements and deep discounting raise potential competition concern, as an e-commerce platform with market power can thwart competition by entering into exclusive contracts.

— It also said that the commission was not the only anti-trust regulator which has initiated enquiry against Amazon. European Commission, in July 2019 had also initiated formal investigation against Amazon on the aspect of collection of competition sensitive data of sellers on the market place and its potential misuse.

In its judgement, the court said that it would be unwise to prejudge the issues raised by the petitioners in these writ petitions at this stage and scuttle the investigation.

Therefore, the impugned order did not call for any interference.


Japan travel news, japan travel guides, japan holiday destinations and japan reviews

LATEST NEWS

NEWS RELATED

Flipkart may get an investment of over Rs 3,000 crore by ADQ

ADQ, formerly known as Abu Dhabi Developmental Holding Company, is in advanced stages of discussions to pump in about USD 400-500 million (around Rs 3,000 crore to Rs 3,660 crore) in e-commerce major Flipkart, according to sources. The transaction could value Flipkart between USD 35-40 billion, sources close to the…

Read more: Flipkart may get an investment of over Rs 3,000 crore by ADQ

News Analysis | Karnataka HC order throws spotlight on Amazon’s FDI rule violations

The Karnataka High Court’s refusal to stay the Competition Commission of India’s investigation into Amazon and Flipkart puts the spotlight on how foreign companies in the e-commerce sector have side-stepped regulations in an attempt to dominate the market. Anti-competitive practices such as promoting preferred sellers on their websites and preferential…

Read more: News Analysis | Karnataka HC order throws spotlight on Amazon’s FDI rule violations

Karnataka High Court order latest in a string of legal troubles for Amazon in India

CAIT has launched an ‘e-commerce purification week’ from June 14 to June 21, against Amazon, Walmart-owned Flipkart and many other foreign-funded e-commerce companies. (Representative Image) Amazon and Flipkart face an investigation by the Competition Commission of India after the Karnataka High Court last week allowed the anti-trust watchdog to go…

Read more: Karnataka High Court order latest in a string of legal troubles for Amazon in India

Amazon app quiz June 14, 2021: Get answers to these five questions and win Rs 25,000 in Amazon Pay balance

Amazon is back with yet another dose of its daily app quiz. As part of the quiz today, the e-tailer is giving the participants a chance to win Rs 25,000 in Amazon Pay balance.The daily app quiz comprises five questions that are based on general knowledge and current affairs. A…

Read more: Amazon app quiz June 14, 2021: Get answers to these five questions and win Rs 25,000 in Amazon Pay balance

Amazon's new 'robot' employees to make the workplace safer

The use of robotic technology isn’t that uncommon these days. However, Amazon is taking that technology to a new level. According to a blog post by Amazon, the company is set to get ‘robot’ employees to make the workplace safer. Amazon has fulfilment centres in several parts of the world.…

Read more: Amazon's new 'robot' employees to make the workplace safer

Amazon merchant acquirers open new battlefront in China

It was the bastion US e-commerce giant Amazon could not conquer. Today, China is the new battleground for aggregators on the prowl for direct-to-consumer e-commerce brands that sell on Amazon.

Read more: Amazon merchant acquirers open new battlefront in China

Breaking up tech giants in focus as 4 new US antitrust bills introduced

A bipartisan group of lawmakers in the U.S. House of Representatives introduced four bills on Friday aimed at reining in the power of the tech giants, with one potentially leading to their break-up. Two of the bills address the issue of giant companies, such as Amazon.com Inc and Alphabet Inc’s Google, creating a platform for other businesses and then competing…

Read more: Breaking up tech giants in focus as 4 new US antitrust bills introduced

Amazon raises minimum pay in Germany to 12 euros per hour

Amazon will guarantee an entry-level wage at its German warehouses of 12 euros ($15) an hour, the company said in the face of a long-running battle with a top labour union. Germany is Amazon’s biggest market after the United States, and the Verdi union has been organising strikes at Amazon…

Read more: Amazon raises minimum pay in Germany to 12 euros per hour

E-commerce players flouting norms, revise FDI guidelines, CAIT tells govt

OnePlus Nord CE 5G pre-orders start: All the offers you can get

Breaking up Big Tech in focus as new US antitrust bills introduced

U.S. House lawmakers introduce five bipartisan bills to target Big Tech

SBI Union and others ask RBI not to permit payment platform by corporates

Frequent run-ins with India govt cloud US tech expansion plans

Karnataka High Court dismisses pleas by Amazon, Flipkart to quash CCI's antitrust probe

Amazon India, Flipkart to face antitrust probe after high court dismisses plea

OTHER NEWS