Supreme Court Transfers CCI Probe Cases Against Amazon and Flipkart to Karnataka HC
Supreme Court transferred all petitions on CCI’s anti-competitive practices probe against Amazon and Flipkart to the Karnataka High Court for unified adjudication
Supreme Court – Karnataka HC – Supreme Court – Amazon cases – Flipkart cases – TAXSCAN
Supreme Court – Karnataka HC – Supreme Court – Amazon cases – Flipkart cases – TAXSCAN
The Supreme Court of India ordered that all 26 petitions related to the Competition Commission of India’s ( CCI ) investigation into Amazon and Flipkart be transferred to the Karnataka High Court.
The order was issued by a bench of Justice Abhay S Oka and Justice Ujjal Bhuyan during a hearing on Monday [06.01.2025]. The Court clarified that if similar cases are filed in any other High Courts in the future, they will also be sent to the Karnataka High Court for resolution.
Why Are Amazon and Flipkart Under Investigation?
The Competition Commission of India (CCI) started investigating Amazon and Flipkart in 2020 after receiving complaints from a group of small traders called the Delhi Vyapar Mahasangh.
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The traders alleged that Amazon and Flipkart offer huge discounts on their platforms making it hard for smaller sellers to compete. The platforms give preferential treatment to certain sellers, many of whom are closely linked to Amazon or Flipkart. They launch exclusive online products, creating an unfair advantage.
The CCI started to investigate if these practices violated India’s Competition Act, of 2002. After the CCI ordered its investigation, Amazon and Flipkart filed cases in multiple High Courts arguing that the probe was unfair and unnecessary. These cases were spread across Delhi, Karnataka, Madras, Telangana, Allahabad, Punjab & Haryana High Courts.
In June 2021, a single-judge Bench dismissed their pleas, stating it was premature to stop the investigation. A Division Bench of the Karnataka High Court upheld this decision explaining that innocent parties should not fear an inquiry. In August 2021, the Supreme Court refused to interfere and allowed the investigation to continue.
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By August 2024, the CCI completed its investigation and concluded that both e-commerce businesses had violated competition laws by favoring select sellers and launching exclusive products.
To avoid delays and conflicting rulings, the CCI approached the Supreme Court to club all the cases and transfer them to a single court. Initially, the CCI wanted the cases to be moved to either the Supreme Court or the Delhi High Court, but during discussions, the Attorney General of India, R. Venkataramani, suggested transferring them to the Karnataka High Court, where some of the cases were already being heard.
On December 13, 2024, the Court refused to transfer the petitions to the Delhi High Court or a Division Bench of the Karnataka High Court citing procedural rules requiring such cases to start before a single-judge Bench. On December 16, the Court stayed proceedings in the Karnataka High Court while it considered the matter further.
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On January 6, 2025, the Supreme Court ruled that all cases related to the CCI’s investigation will now be heard by the Karnataka High Court’s single-judge bench. If any new cases on the same matter are filed in other High Courts, they will also be sent to the Karnataka High Court. Judges handling the cases in the Karnataka High Court will have the authority to grant more time to complete legal paperwork if needed.
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