Supreme Court Transfers Petitions Filed Against CCI Probe Into Amazon-Flipkart To Karnataka HC

The Supreme Court on Monday (January 6) transferred to the Karnataka High Court multiple writ petitions pending in various High Courts challenging the Competition Commission of India's (CCI) probe into alleged anti-competitive practices by Amazon and Flipkart-associated sellers.

A bench of Justice Abhay Oka and Justice Ujjal Bhuyan passed the order in a transfer petition filed by the Competition Commission of India. The bench noted that the subject matter involved in the writ petitions is the same as the petition which is being heard by a single bench of the Karnataka High Court. 

The bench ordered that any future petitions filed in relation to the same subject matter will also be transferred to the Karnataka High Court. Attorney General for India R Venkataramani appeared for the CCI. Senior Advocate Abhishek Manu Singhvi, appearing for certain respondents, submitted that his clients do not object to the transfer of the matters to the Karnataka High Court.

Noting that the single judge before whom the petitions are part heard is at present is sitting at the Dharwad bench, the Court stated that he can be permitted to sit at the principal bench for hearing the pending as well as the transferred petitions.

Background of the Case

The CCI initiated the probe in January 2020 under Section 26(1) of the Competition Act, 2002, following a complaint by the Delhi Vyapar Mahasangh, a traders' association. The complaint alleged that Amazon and Flipkart gave preferential treatment to select sellers, boosting their visibility and disadvantaging others. The association also claimed that these preferred sellers were closely linked to the platforms.

In June 2021, a single judge of the Karnataka High Court dismissed writ petitions filed by Amazon and Flipkart challenging the probe. Justice PS Dinesh Kumar observed that halting the investigation at the preliminary stage would be unwise. This judgment was later upheld by a division bench of the High Court, which noted that if the companies were not involved in any violation of the law, they should not avoid the inquiry. Subsequently, in August 2021, the Supreme Court also refused to interfere with the CCI's preliminary investigation.

In August 2024, the CCI concluded its investigation, finding that Amazon and Flipkart had violated competition laws by favoring select sellers and launching exclusive online products.

Amazon and Flipkart-associated sellers filed petitions in various High Courts, including Karnataka, Punjab and Haryana, Delhi, Madras, Allahabad, and Telangana, challenging different aspects of the CCI's investigation.

Proceedings in the Supreme Court

The CCI filed a transfer petition in the Supreme Court seeking to consolidate 24 writ petitions pending across different High Courts to prevent multiplicity of proceedings and delays. The number of petitions later increased to 26.

On December 13, a bench comprising Justice Abhay Oka and Justice Pankaj Mithal refused to transfer these petitions to Delhi High Court or a division bench of the Karnataka High Court.

The Court emphasized that the CCI could not bypass the Karnataka High Court Rules, which mandate that such cases be heard first by a single judge. The Court also expressed its disinclination to transfer the cases to the Delhi High Court.

The Court directed the Attorney General for India (AGI), R. Venkatramani, to take instructions on whether the CCI agreed to have all the cases transferred to the Karnataka High Court single judge bench, where some petitions are already being heard.

On December 16, 2024, the Supreme Court indicated that it might transfer all writ petitions to the Karnataka High Court. The Court issued notices returnable on January 6, 2025, and stayed proceedings in the petitions before the Karnataka High Court in the meantime.

The AGI informed the Court that the CCI had no objection to the cases being heard by the Karnataka High Court, provided there was uniformity and a timeline for hearings. The Court allowed the CCI to add necessary parties and directed it to file an amended cause title within two days.

Case no. – TP (C) No. 3364-3387/2024 Diary No. 56571/2024

Case Title – Competition Commission of India v. Cloudtail India Private Limited