The Supreme Court on Monday resolved jurisdictional concerns regarding multiple petitions submitted by Amazon and Flipkart, which sought to contest the Competition Commission of India’s (CCI) directive mandating a detailed investigation into potential anti-competitive conduct by the e-commerce platforms.
The CCI’s directive stemmed from allegations raised by trade associations, accusing the companies of unfair market strategies.
A bench led by Justices Abhay S Oka and Ujjal Bhuyan concluded that transferring all associated petitions to the Karnataka High Court would promote judicial consistency and procedural coherence. The bench remarked, “It will be appropriate if all the petitions which are the subject matter of this transfer petition are transferred for hearing to the High Court of Karnataka.”
Additionally, the court instructed that, in instances where pleadings have not been finalized, adequate time should be granted to complete the process.
During the session, Attorney General R. Venkataramani highlighted that following the CCI’s initial petition, several related pleas were filed across various high courts. Specifically, five such petitions had emerged in different jurisdictions, prompting the need for a unified judicial forum. The Supreme Court accordingly directed that these cases be consolidated under the Karnataka High Court’s jurisdiction.
Moreover, the court mandated that any similar petitions filed in other high courts in the future would also fall under this directive: “If similar petitions are hereafter instituted in any other high court, the same shall also be covered by this order.”
Previously, the Supreme Court had issued a notice concerning the CCI’s request to centralize the adjudication of cases either in the Supreme Court or the Delhi High Court. Before the current directive, related petitions were pending in the high courts of Allahabad, Madras, Telangana, Punjab and Haryana, Delhi, and Karnataka.
The origin of the CCI’s investigation can be traced to a complaint by the Delhi Vyapar Mahasangh, an organization representing traders dealing in smartphones and accessories. The complaint accused Amazon and Flipkart of engaging in practices such as deep discounting and exclusive arrangements with select sellers, which allegedly distorted fair competition.
In reaction to the investigation order, both Amazon and Flipkart independently approached various high courts, seeking to nullify the probe on procedural and legal grounds.
However, the Supreme Court’s latest directive consolidates all pending petitions under the purview of the Karnataka High Court.
This order signifies a critical milestone in the regulatory oversight of digital commerce in India. By streamlining the judicial process, the Supreme Court aims to reduce jurisdictional discrepancies and expedite the resolution of intricate legal disputes.
This move is expected to foster greater judicial efficiency and contribute to a more robust regulatory framework for competition in the e-commerce sector.
