Walmart’s online seller Flipkart sues India’s watchdog over antitrust probe Reuters

By Aditya Kalra

NEW DELHI (Reuters) – Three online sellers operating on Walmart-owned Flipkart have sued India’s antitrust watchdog over an investigation that found they, Flipkart and rival Amazon (NASDAQ: ) violated competition laws, according to court filings seen by Reuters.

The filings come after antitrust investigations concluded in August found that Amazon and Flipkart, some of their smartphone sellers and brands, violated local competition laws by giving undue preference to select online sellers and prioritizing certain listings, a Reuters reported.

Flipkart is one of the largest e-commerce players in India and rivals Amazon.

In an effort to quash the critical proceedings, the three sellers on the platform made representations to the Karnataka High Court to “set aside” the investigation report and stay the Competition Commission of India (CCI) process.

Lawsuits from sellers Amazon and Flipkart may delay the investigation process that first began in 2020 and was triggered after retailers from the Confederation of All India Traders complained to the watchdog. Amazon and Flipkart deny any wrongdoing.

Three of Flipkart’s sellers – CIGFIL Retail, Wishery Online, Xonique Ventures – claim in their lawsuits that during the investigation they were subpoenaed to provide data to help officials but were later named as defendants, which is against due process, the documents show the court.

“The purported investigation … is arbitrary, opaque, unfair,” the vendors argued in three separate court filings, likely to be heard next week.

Flipkart and 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 stay the probe. Her court filing – seen by Reuters – claimed the CCI did not give notice before naming her an accused in the case.