Over Two Dozen Petitions Filed by Corporates including Samsung to Limit Its Regulatory Role: CCI to SC

The CCI contends that the writ petitions challenge the Director General's authority to expand investigations beyond parties initially identified in its orders
Writ petitions by corporates in India - Samsung India against CCI - supreme court - taxscan

The Competition Commission of India ( CCI ) has informed the Supreme Court that two dozen writ petitions filed in various high courts by companies such as Cloudtail India Pvt. Ltd, Appario Retail Pvt. Ltd, Samsung India Electronics Pvt. Ltd, and Rocket Kommerce LLP aim to curtail the regulator’s investigative powers.

These petitions, which resulted in interim stays granted by the Karnataka, Punjab and Haryana, and Madras High Courts, have effectively stalled CCI’s proceedings against Amazon and Flipkart over alleged anti-competitive practices.

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In response, CCI has filed a petition with the Supreme Court seeking the transfer of all 24 cases to the apex court to resolve the impasse, reported The Mint.

According to CCI, the writ petitions challenge the powers of its Director General (DG) to expand investigations beyond the parties initially identified by the Commission in its orders. The CCI stated that it undermines the intent of the Competition Act and impedes justice, as it restricts the DG from probing additional parties even when evidence against them surfaces during investigations.

The petitions also raise critical legal questions about whether the DG can investigate third parties not explicitly named as “opposite parties” during the initiation of investigations, and whether such parties are entitled to prior notice and a hearing before being included in the inquiry.

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Companies like Amazon, Flipkart, and Samsung have yet to respond to these allegations, while CCI maintains that the petitions are attempts to obstruct lawful investigations.

Meanwhile, the CCI has also turned its focus to Google and its affiliates for alleged anti-competitive practices in the listing of real-money gaming (RMG) apps on the Google Play Store.

A complaint by WinZO Games accuses Google of abusing its dominant market position to favor specific gaming categories, such as Daily Fantasy Sports (DFS) and Rummy, while sidelining others. The CCI’s investigation could have significant implications for Google and India’s growing RMG sector, which is expected to expand from $3.8 billion in FY24 to $9.2 billion by FY29.

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CCI observed that Google’s dominance in the Android ecosystem gives it considerable control over app distribution, raising concerns about selective practices, market distortion, and a lack of clarity in its policies. These practices, the CCI warned, could stifle competition and harm innovation in the rapidly evolving RMG industry.

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