Flipkart Faces Antitrust Probe in India: Walmart’s Flipkart faces further antitrust investigation in India after an appeals court ordered the competition watchdog to investigate whether the firm exploited its dominant e-commerce position.
Following the 2018 Competition Commission of India (CCI), the All India Online Vendors Association filed an appeal at the National Company Law Appellate Tribunal (NCLAT) said that Flipkart and the local unit of Amazon.com did not breach antitrust rules.
An order published by NCLAT on Thursday said that “CCI is directed to direct the Director-General to cause an investigation” into the matter. It was not immediately clear how soon an investigation would be launched by the CCI.
The petition is another headache for Flipkart, who faced increasing criticism from brick-and-mortar retailers along with Amazon’s India, accusing companies of funding sharp discounts and discriminating against small sellers. Both companies Flipkart and Amazon have denied the accusations.
“It’s a massive victory for all online sellers, since there is no ongoing probe against Flipkart,” Chanakya Basa, a lawyer for AIOVA, told Reuters.
“This order could pave a way for other online sellers to take their grievances against online platforms to the CCI.”
A spokeswoman of Flipkart said the company was awaiting a copy of the order. Users can stay connected to this website for the latest business news around the world.