Almost a week after Flipkart had filed a writ petition challenging the probe order of Competition Commission of India (CCI) over alleged violations of competition law, the Karnataka High Court has granted interim stay on the CCI’s probe.
CCI was investigating into Flipkart’s alleged malpractices, including predatory pricing and preferred treatment to select sellers.
‘Flipkart got a stay on the same lines as Amazon’, mentioned a Mint report quoting one of the people familiar with the development.
On February 21, the Walmart-owned e-commerce company had alleged that the regulator probe is based on mere allegations and lack evidence.
“The bare perusal of the impugned order makes it evident that the CCI has proceeded on the basis of mere speculation and has failed to appreciate that such an order exposes responsible corporate entities like the petitioner to the rigours of an intrusive investigation prejudicially affecting not only its credibility and reputation but also its commercial prospects,” said Flipkart.
Earlier on February 14, Amazon had also won an interim stay against the CCI probe order. Amazon’s counsel had raised questions on CCI’s jurisdiction and called the probe order ‘perverse, arbitrary, untenable in law’.
Both Amazon and Flipkart have been under the scanner over allegations of offering deep discounts, preferred listings, promotion of private labels and exclusive partnerships with phone brands since long.
On January 13, the CCI had issued an order to investigate the alleged competition law violations by Amazon and Flipkart.
In response, the high court had earlier stated that CCI’s complaints are based on the allegations as they had no material evidence on record to prove that they entered into exclusive deals with smartphone manufacturers.