Flipkart Sellers Sue India’s Antitrust Watchdog Over 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 aims to halt the Competition Commission of India's proceedings, according to court filings reviewed by Reuters.

Flipkart Sellers Take Legal Action to Halt Indian Antitrust Investigation, Citing Unfair Process

According to court filings obtained by Reuters, three online merchants that operate on Flipkart, which Walmart owns, have filed a lawsuit against the Indian antitrust watchdog in response to an investigation that determined that Flipkart and its competitor, Amazon, 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 sellers and smartphone brands, had violated local competition laws by prioritizing specific listings and giving disproportionate preference to certain online sellers. Reuters reported this information.

Flipkart is a significant participant in the Indian e-commerce industry and competes with Amazon.

The three sellers on the platform submitted submissions to the High Court of Karnataka to "set aside" the investigation report and halt the Competition Commission of India (CCI) process to halt the critical proceedings.

The investigation process, initiated in 2020 in response to complaints from brick-and-mortar retailers of the Confederation of All India Traders, may be delayed by lawsuits filed by Amazon and Flipkart vendors. Flipkart and Amazon deny any misconduct.

Flipkart Sellers Accuse Indian Antitrust Watchdog of Unfair Practices in Ongoing Legal Battle

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

In three separate court filings, the sellers argued that "the alleged investigation ... is arbitrary, opaque, unfair. " The filings will likely be heard next week.

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

Additionally, a former Amazon vendor filed a lawsuit against the CCI last week and was granted an interim injunction to prevent the investigation from continuing. Its court filing, which Reuters has reviewed, contended that the CCI failed to provide notice before its inclusion as an accused in the case.