Left Menu
Development News Edition

Karnataka HC breather for Amazon, Flipkart


Karnataka HC breather for Amazon, Flipkart
File photo Image Credit: Wikipedia

The Karnataka High Court on Friday granted an interim stay on the investigation ordered by the Competition Commission of India (CCI) against e-commerce giants Amazon and Flipkart for alleged violations of provisions of competition laws.

"The commissions' order directing investigation is stayed by the court. It has given eight weeks for the parties to respond," an advocate connected with the case said. Amazon on Monday had moved the high court seeking a stay on the investigation ordered by the CCI. In its plea, Amazon sought quashing and setting aside of the CCI's January 13, 2020 probe order, and had also prayed the court to provide relief based on "facts and circumstances of the case in the interest of justice."

In January, fair trade regulator CCI had ordered the probe against Flipkart and Amazon for alleged malpractices, including deep discounting and tie-ups with preferred sellers on their platforms. The order followed a complaint filed by Delhi Vyapar Mahasangh, whose members comprise many traders dealing in smartphones and related accessories. In its petition, Amazon contended that the CCI order had been passed "without application of mind" and would cause irreparable loss/injury to the goodwill/reputation of the company if an investigation is allowed.

It also said the order would cause "serious prejudice" against Amazon and its findings are "perverse, arbitrary, untenable" in law. Welcoming the stay, Amazon termed it as a step in the legal process. "While we welcome and respect the decision of the High Court of Karnataka, this is just a step in the legal process. We are confident about our compliance, Amazon spokesperson said in a statement. The Confederation of All India Traders (CAIT) has said it would file an appeal against the High Court order.

Delhi Vyapar Mahasangh is an affiliate of the CAIT. Both CAIT andDelhiVyaparMahasanghhave decided to file an appeal against the order of the High Court soon and both are consulting their respective lawyers. Meanwhile, the CAIT would push with the Union government to speed up the ED investigation.

In this context, a CAIT delegation would soon meet Commerce Minister Piyush Goyal and Finance Minister Nirmala Sitharaman, it said in a statement. CAIT said the high court has stayed the order for investigation passed by the CCI on the ground that the ED has already initiated an investigation into Flipkart and Amazon's activities that are alleged to be in contravention of the FDI policy. The court was therefore of the opinion that FDI violations being in the realm of the ED and the Adjudicating Authority under the FEMA, the case of CCI vs Bharti Airtel would apply to the case and ED would have to give its report before the CCI could proceed with the matter. The court also noted that while the CCI had asked Amazon for its comments in a previous case (filed by AIOVA), CCI should have also called the parties in the present matter when they were made respondents before passing the impugned order, it added.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION/BLOG/INTERVIEW

Top 10 Fake News, Myths and Realities on 2019 Novel Coronavirus COVID 19

With nearly 1500 deaths by January 14 and around 65,000 infections in China, the Novel Coronavirus 2019 has become one of the worst health epidemics of the 21st Century. However, 8,573 people have been cured but the rumor mongers are a...

Handling fake news Infodemic in time of Coronavirus epidemic

Social media has provided a platform where everybody can disseminate his her views without any supervision. Its excellent if the message is genuine but misinformation is equally disastrous. Health is such a topic where every Tom and Harry c...

Sentiment Analysis on Budget 2020: Long shot for solution to economic worries?

Industries and individuals alike had high expectations from the government to take tangible steps but the budget 2020 seems to have failed expectations....

How can technology help the future of mobility?

More than a billion people or one-third of the global rural population lacked access to all-season roads and transport services in 2016, subsequently hindering the socio-economic development....

Videos

Latest News

Brewers sign LHP Suter, avoiding arbitration

The Milwaukee Brewers signed left-hander Brent Suter to a two-year contract Sunday and avoided an arbitration hearing scheduled for Monday. Multiple outlets reported the deal was for 2.5 million-plus additional incentives for meeting certai...

UPDATE 1-Tennis-Norwegian Ruud claims first ATP Tour title with Argentina win

Casper Ruud put Portugals Pedro Sousa on the defence early and became the first Norwegian to win an ATP Tour title at the Argentina Open on Sunday.Ruud appeared on his way to an easy victory with his first-set domination but lucky loser Sou...

Hornqvist's 3 points propel Penguins past Red Wings

Patric Hornqvist scored two goals in the first two periods and added an assist and the Pittsburgh Penguins eased past the visiting Detroit Red Wings, 5-1, on Sunday afternoon. Captain Sidney Crosby, Sam Lafferty, and defenseman Kris Letang ...

Archibald tallies twice to help Oilers outlast Hurricanes

Josh Archibald capped a two-goal performance by scoring 357 into overtime to give the Edmonton Oilers a 4-3 victory against the Carolina Hurricanes on Sunday in Raleigh, N.C. Archibalds second goal of the game and ninth of the season was as...

Give Feedback