The Competition Commission of India (CCI) has appealed in the Supreme Court against Karnataka HC's interim stay on a probe that the watchdog had ordered against ecommerce majors Flipkart and Amazon over alleged anti-competitive practices.
The CCI has filed a Special Leave Petition on September 21 in the Supreme Court.
The competition watchdog had, on January 13, ordered a probe against Amazon, Flipkart on alleged anti-competitive practices on a case filed by the Delhi Vyapar Mahasangh under Section 3 of the Competition Act.
Section 3 of the Act deals with anti-competitive agreements, and the Delhi-based association had alleged that both Amazon and Flipkart were indulging in exclusive arrangements with smartphone makers, preferential treatment to some sellers, and deep discounting.
The CCI had said there was a prima facie case and had asked the DG to investigate both companies.
Flipkart and Amazon had moved the Karnataka HC against the CCI order, asking for the order to be quashed and be given an interim stay.
The Karnataka High Court had on February 14 granted an interim stay on the CCI order and had asked all the parties to come back with more evidence and details in two months.
While no developments seem to have taken place on the matter since then, the CCI has now approached the Supreme Court. It is to be seen when the Supreme Court will hear their case and whether they will accept the appeal.
This could bring more concern to Amazon and Flipkart, which have faced multiple investigations and cases over recent years filed by seller bodies and trade associations against their business practices.
CNBC-TV18 reported earlier that Flipkart has moved Supreme Court against a CCI investigation based on a complaint by the All India Online Vendors Association (AIOVA).
In March, the NCLAT asked CCI to investigate Flipkart over allegations of abuse of dominant position.