NCLAT asks CCI to probe against Flipkart over allegations of unfair practices

NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) on Wednesday asked the fair trade regulator CCI to initiate again the probe against Flipkart for an alleged use of its dominant position.

A three-member bench of the NCLAT headed by Chairman Justice S J Mukhopadhaya has set aside the earlier order passed by the Competition Commission of India (CCI) in this regard.

Earlier, the CCI had absolved e-commerce major Flipkart of unfair practices using its dominant position. The appellate tribunal has directed the CCI to ask its probe arm Director General (DG) to investigate into the allegations. "We set aside the order passed by CCI...," the bench said adding that the fair trade regulator "is directed to initiate probe against Flipkart." The NCLAT said that the All India Online Vendors Association (AIOVA) has successfully made its case here. Passing an order on November 6, 2018, the CCI had held that the business practices of Flipkart and Amazon are not in violation of competition norms and rejected allegations of abuse of market dominance made by AIOVA.

The AIOVA had alleged abuse of market dominance against Flipkart India Pvt Ltd, which is into wholesale trading/distribution of books, mobiles, computers and related accessories, and e-commerce marketplace Flipkart Internet Pvt Ltd. The CCI had ruled that looking at the present market construct and structure of online marketplace platforms in India, "it does not appear that any one player in the market is commanding any dominant position at this stage of evolution of market".