Supreme Court Directs Amazon, Flipkart Cases to Karnataka High Court

The Supreme Court on Monday directed that all cases related to the Competition Commission of India’s (CCI) probe into Amazon and Flipkart’s alleged unfair practices be transferred to the Karnataka High Court. The move aims to streamline the legal process, as petitions have been filed in multiple high courts across the country.

Allegations of Unfair Practices

The CCI initiated a investigation against Amazon and Flipkart after complaints from Delhi Vyapar Mahasangh, a traders' group. The accusations include deep discounting and exclusive tie-ups with preferred sellers, practices that could harm smaller businesses. The investigation highlights growing concerns about fair trade practices in India’s e-commerce market.

Supreme Court Steps In

The bench, comprising Justices Abhay S Oka and Manmohan, stated, "Prima facie, we are of the view that all cases, which are pending in various High Courts should be transferred to Karnataka High Court for hearing." A notice has been issued, and the matter is set for January 6, 2025. Until then, the Karnataka High Court has been asked not to proceed with any hearings on the matter.

Requests for Case Consolidation

The CCI filed a plea to transfer all pending cases to either the Supreme Court or Delhi High Court. The cases are currently spread across high courts in Allahabad, Madras, Telangana, Punjab & Haryana, Delhi, and Karnataka. Attorney General R Venkataramani, representing the CCI, stated they had no objections to the Karnataka High Court hearing the cases.

Implications for E-Commerce

This legal battle underlines rising consideration of e-commerce giants in India. Both Amazon and Flipkart have challenged the probe, arguing against the CCI’s jurisdiction and the nature of the complaints. The Karnataka High Court will now become the crucial point for addressing these concerns, possibly shaping the future of e-commerce principles in the country.

This decision by the Supreme Court ensures that all related cases are merged, making the process more efficient while providing clarity on the legal framework leading online marketplaces.