The Supreme Court said on Tuesday that e-commerce Major Flipkart was known to form a monopoly and expressed concern over the fate of small players in the market.
A bench of Justices Surya Kant and N. Kotiswar Singh appointed an amicus coreia to assist in the adjournment of the dispute arising out of the order of the Law Appellate Tribunal (NCLAT), who is asking the Fair Trade Regulator Competition Commission (CCI) to initiate an inquiry against the flipcart for an alleged use for its dominance.
A bench of Justices Surya Kant and N. Kotiswar Singh was surprised that the complainant, the All India Online Vendor Association (AIOVA), in which allegedly accused of improper trade practices by Flipkart, was not found anywhere because its lawyers had no instructions from the body.
Advocate Udayaditya Banerjee, who was present for AIAVA, said it was possible that the organization was dissolved or no longer in existence.
The bench told Flipkart’s counsel that she would like to investigate the issue of monopoly.
“We want big players to come here and invest, but at the same time, we are worried about the mouth of the dragon … this is a serious issue, and we have to take into account the interests of consumers and small players. Some balance authority is needed,” the bench said.
Flipkart’s lawyer said that due to the platform, many small sellers were able to take their businesses to the national level.
Justice Kant said that sometimes Flipkart offered such a discount that disrupted the business and market balance of small players.
It asked Banerjee to assist the court in the case, otherwise it would be an uneven fight.
The bench said that it does not matter whether the complainant Aiova was earlier or not, as it would want to investigate the issue in detail.
The bench was also being represented through CCI lawyers and asked why a semi -judicial body is being represented in the case.
Justice Kant said, “This order has passed, good or bad. This (CCI) job is over. Why should the right be here in a case?”
The apex court was informed that due to an order from the apex court, CCI was represented in every case.
The bench posted the case in August.
Flipkart challenged the NCLAT’s 4 March 2020 order, in which CCI asked to initiate an inquiry against Flipkart for alleged use of its major condition.
The Appellate Tribunal distinguished an order passed by the CCI, which unlikely using its main condition absent Flipkart of unfair practices.
The Appellate Tribunal directed the CCI to ask the Director General of his investigation to investigate the allegations.
In November 2018, AIOVA approached the CCI, alleging misuse of market dominance by the e-commerce chief.
AIAVA misused market dominance against Flipkart India Private Limited, which is in wholesale trade/distribution of books, mobile, computer and related accessories, and e-commerce marketplace Flipkart Internet PVT Limited
