Mumbai: The Karnataka High Court on Friday was dismissed with Amazon.com Inc.
and Flipkart Walmart who tried to stop an antitrust investigation into their business practices, handling large setbacks to the main company in the main market.
The Indian Competition Commission (CCI) last year ordered an investigation after charges of brick and mortar retailers promoted by US companies promoting sellers on their e-commerce platforms and used for competing business practices.
Investigation was postponed for more than a year after the company challenged him, denying errors and arguing that CCI did not have evidence, but the court let it continue in June.
On Friday, the High Court rejected US companies.
“There is no stretch of imagination Can the investigation canceled at this stage.
Appeal is none other than an effort to ensure that the actions initiated by CCI …
did not reach finality,” said two judges when reading decisions in court.
“Appeal is no service, and deserves to be dismissed.” The two companies tend to beg for decisions at the Indian Supreme Court, according to people who are familiar with this case.
Amazon did not immediately respond to a request for a comment.
Flipkart said in a statement it would review the court order, adding that it remained in accordance with Indian law.
Abir Roy from Sarvada Legal, who filed an antitrust case against Amazon and Flipkart on behalf of the merchant group, said the court’s decision “further strengthened that CCI investigations must continue immediately.” CCI investigations are the latest setbacks for Amazon and Flipkart, which are wrestling with the outlook for harder e-commerce regulations and charges of brick and mortar retailers who are stranded by Indian companies by creating complex business structures.
The company faces several accusations in this case, including exclusive mobile launches, select seller promotions on their websites and Discount Practices that expel competition.
In February, Reuters investigations based on Amazon documents showed that it had provided preference treatment for years to a small group of sellers and used it to pass on Indian law.
Amazon said it did not provide any special treatment to any seller.
The Minister of Trade Piyush faltered last month attacked the US e-commerce giants to submit a legal challenge and failed to obey CCI’s investigation, by saying “If they did not hide …
why did they not respond to CCI?” Amazon faces another CCI challenge, with the supervisor accusing the company to hide facts and make false submissions when sought for approval for the 2019 agreement with Indian companies, Reuters reported on Thursday.