NCLAT asks CCI to probe Flipkart over vendors plea

Chennai: After getting some respite from the competition watchdog in the Karnataka High Court recently, e-commerce companies now have something more to worry about. The National Company Law Appellate Tribunal (NCLAT) has asked the  Competition Commission of India (CCI) to initiate a probe against Flipkart in a case filed by the All-India Online Vendors’ Associ-ation. (AIOVA)

The NCLAT on Wednesday set aside the order passed by the CCI and directed the director general to investigate the business practices of Flipkart in an appeal filed by the AIOVA. The CCI in November 2018 had absolved Flipkart of alleged unfair business practices through abuse of its dominant position.

The AIOVA had alleged abuse of market dominance by Flipkart.

“We are delighted with today's order. We are positive after the e-commerce study findings that CCI will penalise these platforms for violating various provisions of the Competition Act,” said Chanakya Basa, counsel for AIOVA.

Reacting to the order, a Flipkart spokesperson said: "we understand that the NCLAT has issued an order in relation to the AIOVA appeal. We are currently awaiting a copy of the order".

Both Amazon and Flipkart had recently received a respite when Karnataka High Court had  stayed a CCI probe against them. In that case filed by Delhi Vyapar Mahasangh against the e-commerce biggies, the HC had noted that CCI should have also called AIOVA in the matter before passing the impugned order.