Amazon.com Inc. has taken legal action to quash the company’s antitrust investigation, arguing it could cause “irreparable” harm and damage to its brand, according to Reuters ‘ court ruling.
Last month, India’s Competition Commission (CCI) called for an investigation of Walmart-owned Amazon and competitor Flipkart over possible violations of competition law and some discounting practices.
Amazon and Flipkart have faced mounting criticism from brick-and-mortar retailers who accuse the US giants of breaking the legislation by racking up trillions of dollars in profits to finance deep discounts and discriminate against small sellers. The organization denies the allegations.
The CCI ordered its investigation after a retailer group based in New Delhi alleged that the e-commerce giants were supporting select sellers and in effect hurting business in one of the world’s largest online shopping markets for other smaller players.
“The entire order passed by (the CCI) … is bereft of any foundation,” Amazon said in a February 10 filing to a court in Bengaluru, rejecting the allegations levelled against the company.
“(The investigation order) suffers from non-application of mind. As it appears to contain no reference to the finding of an appreciable adverse effect on competition.”
Flipkart Responds on Probe on Amazon
Amazon refused a request for comment by Reuters, saying the matter was moving through the courts. The CCI did not respond immediately to a request for comment.
So, flipkart said it was “completely compliance” with all laws in India after the CCI ordered the investigation.
Amazon’s petition is likely to be heard by the Bengaluru court later this week and the plaintiff trader party, Delhi Vyapar Mahasangh, has been told about it, said a lawyer involved in the matter. Moreover, the trader party must fight their case, the lawyer said, to ensure the antitrust investigation is not quashed or put on hold. Amazon’s also influenced more strict foreign investment laws in India.
Last month, following the launch of the CCI investigation, trade minister said Amazon did not do any “great favour”. Also, this is by announcing a new $1 billion investment. It laying bare the tensions with the online retailer in the US.
“The (CCI) investigation also has reputational consequences for the petitioner. So, it is a global company and a part of the internationally reputed Amazon Group.”
The e-commerce giant said in its filing.
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