BENGALURU: The Supreme Court on Wednesday ordered a stay into the probe ordered by the
National Company Appellate Tribunal (NCLAT) on March 4, 2020 into alleged anti-competitive practices by e-commerce firm Flipkart. NCLAT had asked the market regulator Competition Commision of
India (CCI) to investigate the abuse of market dominance by Flipkart as alleged by AIOVA.
Senior advocate Harish Salve, appearing for Flipkart, told the apex court that the company is not a dominant player in India’s e-commerce market and hence there is no question of abuse of position. Other e-commerce players such as Amazon and Snapdeal are some of the other players who enjoy a significant market share. He also added that NCLAT’s probe was based on the findings of the Income Tax Appellate Tribunal, which is not related to the case.
Regarding the NCLAT’s March order, Salve said that the same was passed without finding prima facie market abuse. A two-member bench of the top court observed that NCLAT hat not taken into consideration the earlier view of CCI in its order dated November 6, 2018 which stated that Flipkart is not dominant in the relevant market of services provided by online marketplace platforms for selling goods in India and thus the issue of abuse of dominant position does not arise.
The CCI has further ruled that no case of contravention of the provisions of Section 4 of the Competition Act is made out against Flipkart India (wholesale unit) and Flipkart Internet (marketplace).The apex court, while staying the NCLAT order, has also sought responses from AIOVA and CCI. AIOVA had earlier
alleged claimed that CCI’s 2018 order was unjust in ruling out dominance prima facie.