Business

Its Amazon, Flipkart v. CCI

Following a report by the Director General, the CCI is willing to close the matter, however, it is well within its rights to conduct an enquiry it told Karnataka High Court. It further added that though the matters concerning Amazon, Flipkart are being heard at other jurisdictions, however, it doesn’t prohibit the CCI from making its enquiry. 

“Given the enormous growth of the market, the fast moving nature of the market, one needs to act spontaneously. We may even close the case, we don’t even know what we will find after the DG’s report. We will apply our mind afresh, but where in the world at least an enquiry is prevented like this..” said Madhavi Divan, Additional Solicitor General (ASG), appearing for the CCI.

Citing the visible difference between FEMA and Competition Act, Divan contended that the two follow distinct procedures and standards. Under FEMA it is much more stringent regime in terms of hearing, SCN, and the standard of adjudication is also more onerous and stringent. If we were to apply the same thing to Competition Law, where everything is supposed to be in a time bound manner then we can be rest assured that the competition would vanish at least in the limited area with which we are concerned, she said. 

Both the Amazon and Flipkart have made submissions challenging the CCI’s orders. 

The development comes to the fore-front as the government is working on a policy for the e-commerce sector. The first copy of the draft created huge tension in the entire ecosystem with leading companies tagging it to be ‘unfavourable’

Source: MoneyControl

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