Three online sellers operating on Walmart-owned Flipkart have filed lawsuits against the Competition Commission of India (CCI) challenging the antitrust investigation into the company and its rival Amazon, Reuters reported.
The investigation, which concluded last month, found that both e-commerce giants and their preferred sellers violated local competition laws.
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According to Reuters, the sellers, CIGFIL Retail, Wishery Online, and Xonique Ventures, argue that the CCI’s decision was unfair and arbitrary.
They claim that they were initially asked to provide data to assist the investigation but were later accused of violating competition laws.
The sellers believe that this is a violation of due process.
The news agency noted, in their lawsuits, the sellers argue that the CCI’s investigation was opaque and lacked transparency.
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By GlobalDataThey also claim that the investigation was biased against Flipkart and its sellers.
The lawsuits could potentially delay the investigation process, which began in 2020 after complaints from brick-and-mortar retailers.
Both Flipkart and Amazon have denied any wrongdoing.
Additionally, the CCI accused top smartphone manufacturers Samsung and Xiaomi of working with the two retailers.
The alleged collusion involves exclusive product launches on the platforms, a practice that may violate local competition laws according to Reuters, which cites regulatory reports dated 9 August 2024.
Chinese tech giant Xiaomi has formally requested the CCI to recall its recent antitrust report on Walmart‘s Flipkart.
The company reportedly argued that the report contains sensitive business data that should have been redacted before being shared with the parties involved in the case.
The CCI’s investigation has significant implications for India’s e-commerce market.
If the investigation finds that Flipkart and Amazon have engaged in anticompetitive practices, it could lead to fines and other penalties.
