CCI urges Supreme Court to transfer Amazon, Flipkart cases to itself or Delhi High Court

The Competition Commission of India (CCI) has urged the Supreme Court to transfer a batch of 24 writ petitions pertaining to alleged anti-competitive practices by e-commerce giants Amazon and Flipkart, pending in various High Courts, either to itself or a single High Court..The CCI has sought the transfer of these petitions preferably to the Delhi High Court, in order to expedite the adjudication as well as to minimise any scope of conflicting rulings on this issue..The 24 petitions are filed across the High Courts of Delhi, Punjab and Haryana, Karnataka and Allahabad, among others. They arise out of information filed by Delhi Vyapar Sangh alleging violations of Competition Act, 2002 by Amazon and Flipkart relating to sale and purchase of mobile phones. It is alleged that the e-commerce companies indulged in exclusive arrangements, deep discounts and preferential listings in violation of competition law..In 2020, the CCI found prima facie merit in Delhi Vyapar Sangh’s submission and ordered an investigation by the Director General (DG). Amazon and Flipkart challenged the DG investigation, but did not get a stay order on the same. The DG also conducted various search and seizure operations against Amazon as it was found expedient and necessary for the investigation.The DG filed his report to the CCI in December 2023. On May 1, 2024, the CCI, on recognising the complexity of the issues, directed the DG to prepare separate reports for Amazon and Flipkart. This led to the bifurcation of the case into two sub-cases: Case No. 40 of 2019 (1), concerning Flipkart and its preferred sellers, and Case No. 40 of 2019 (2), concerning Amazon and its preferred sellers. Subsequently, on August 9, 2024, the DG submitted two distinct investigation reports, highlighting the roles of Amazon and Flipkart in the alleged anti-competitive agreements..On August 24, the CCI issued separate orders directing that the non-confidential version of the DG reports be provided to all the opposing parties, including Amazon. It is CCI’s contention that all the 24 writ petitions arise from this particular order. In September 2024, the Karnataka High Court stayed further proceedings against Amazon, prompting all other High Courts to pass similar orders. It is to be noted that these 24 petitions were filed by Amazon and their sellers. The question these sellers have raised is that whether the DG can investigate against them even though they have not identified as an opposite party..Below is a summary of CCI's plea before the Supreme Court..Why does CCI want these cases to be transferred?.CCI outlines the following reasons for requesting the transfer of the writ petitions to the Supreme Court or a single High Court:Delay in investigations: According to the CCI, litigation across multiple High Courts have caused delays in the case. This runs contrary to its mandate of prompt resolution and public interest.Common legal questions: The writ petitions raise identical questions of law, including procedural rights of parties under the Act, which would benefit from a single authoritative ruling to prevent inconsistent decisions.Halt in inquiries: Interim stays from High Courts have interrupted the inquiry into anti-competitive conduct in the e-commerce sector, affecting millions of consumers.Time-sensitive issues: The inquiry concerns ongoing anti-competitive practices in the mobile phone market, requiring timely intervention to address their current and future implications.Risk of conflicting judgments: Multiple High Court rulings on the same legal issues could result in contradictory interpretations, further delaying resolution and obstructing investigations.Resource burden: Defending similar petitions across multiple courts strains the CCI's resources, impacting its ability to fulfill its statutory obligations under the Competition Act.Established legal principles: The petitions challenge the CCI’s procedural framework, emphasising that investigations do not prejudice parties since appellate remedies are available.Public interest: A consolidated decision would serve the interests of justice, ensure consistency in the application of law, protect consumer rights and maintain market fairness..Meanwhile, on December 8, the CCI informed the Karnataka High Court of the plea and urged it not to continue hearing the petitions. However, the Court rejected CCI's request and heard the arguments of Delhi Vyapar Sangh seeking intervention. The case has now been listed before the High Court for further consideration on December 17.