Flipkart sellers sue India’s antitrust watchdog for unfair competition law probe

Three Flipkart sellers have filed a lawsuit against India’s antitrust regulator, accusing it of conducting an opaque and unfair investigation into competition law violations. The legal challenge seeks to stop the Competition Commission of India’s proceedings, according to court documents reviewed by Reuters.

Flipkart sellers file lawsuit to end Indian antitrust probe, citing unfair process

According to court documents obtained by Reuters, three online merchants that operate on Walmart-owned Flipkart have filed a lawsuit against India’s antitrust watchdog in response to an investigation that determined that Flipkart and its competitor, Amazon , had violated competition laws.

The filings were made following the conclusion of antitrust investigations in August, which determined that Amazon and Flipkart, as well as their smartphone sellers and brands, violated local competition laws by prioritizing specific listings and giving disproportionate preference to certain online sellers. Reuters reported this information.

Flipkart is a major player in the Indian e-commerce sector and competes with Amazon.

The three sellers of the platform have submitted petitions to the Karnataka High Court to “set aside” the investigation report and terminate the Competition Commission of India’s (CCI) process to end the critical proceedings.

The investigation process, launched in 2020 in response to complaints from brick-and-mortar retailers of the Confederation of All India Retailers, could be delayed by lawsuits filed by Amazon and Flipkart sellers. Flipkart and Amazon deny any wrongdoing.

Flipkart sellers accuse India’s antitrust watchdog of unfair practices in ongoing legal battle

CIGFIL Retail, Wishery Online and Xonique Ventures, three Flipkart sellers, claim in their petitions that they were summoned to provide data to help authorities during the investigation, but were later named as suspects, a violation of due process, according to court documents.

In three separate court filings, Sellers argued that “the alleged investigation… is arbitrary, opaque and unfair.” The cases will likely be heard next week.

CCI or Flipkart did not promptly respond to a request for comment and Reuters was unable to contact the three sellers whose records are being reported for the first time.

Additionally, a former Amazon seller filed a lawsuit against the ICC last week and obtained a preliminary injunction to prevent the investigation from continuing. His court filing, which Reuters reviewed, claimed the ICC failed to provide notice before his inclusion as a defendant in the case.