By Aditya Kalra
NEW DELHI, Sept 28 (Reuters) - Three online sellers
operating on Walmart ( WMT )-owned Flipkart have sued the Indian
antitrust watchdog over an investigation which found they,
Flipkart and rival Amazon breached competition laws,
according to court filings seen by Reuters.
The filings come after antitrust investigations
concluded in August found Amazon and Flipkart, some of their
sellers and smartphone brands, violated local competition laws
by giving undue preference to select online sellers and
prioritizing certain listings, Reuters has reported.
Flipkart is one of India's biggest ecommerce players and
rivals Amazon.
In an effort to quash the critical proceedings, the three
sellers on the platform made submissions in the High Court of
Karnataka to "set aside" the investigation report and put the
process of the Competition Commission of India (CCI) on hold.
Lawsuits from sellers of Amazon and Flipkart can potentially
delay the investigation process which first started in 2020, and
was triggered after brick-and-mortar retailers of the
Confederation of All India Traders complained to the watchdog.
Amazon and Flipkart deny any wrongdoing.
Three of Flipkart sellers - CIGFIL Retail, Wishery Online,
Xonique Ventures - in their lawsuits argue that during the
investigation they were called to submit data to help officials,
but were later named as accused, which is against due process,
court papers show.
"The alleged investigation ... is arbitrary, opaque,
unfair," the sellers argued in three separate court filings,
which will come up for hearing likely next week.
Flipkart and the CCI did not immediately respond to a
request for comment. Reuters could not immediately reach the
three sellers, whose filings are being reported for the first
time.
Last week, a former Amazon seller also sued the CCI and
obtained an interim injunction to block the investigation from
proceeding. Its court filing - which Reuters has seen - argued
the CCI did not give notice before making it an accused in the
case.