Walmart’s Flipkart faces an additional antitrust probe in India after an appellate tribunal requested the competitors watchdog to analyze whether or not the corporate had abused its dominant place in e-commerce.
The All India Online Vendors Association filed the enchantment on the National Company Law Appellate Tribunal (NCLAT) after the Competition Commission of India (CCI) in 2018 stated that Flipkart and the native unit of Amazon.com didn’t breach antitrust guidelines.
The NCLAT, in its order revealed on Thursday, stated the “CCI is directed to direct the Director General to cause an investigation” into the matter.
It was not instantly clear how quickly the CCI may begin a probe.
The order is one other headache for Flipkart, which together with Amazon’s India unit has confronted mounting criticism from brick-and-mortar retailers which accuse the corporations of funding steep reductions and discriminating in opposition to small sellers.
Both corporations have denied the allegations.
“It’s a massive victory for all online sellers, since there is no ongoing probe against Flipkart,” Chanakya Basa, a lawyer for AIOVA, advised Reuters.
“This order could pave a way for other online sellers to take their grievances against online platforms to the CCI.”
A spokeswoman for Flipkart stated the corporate was awaiting a duplicate of the order.
The CCI, in a separate case this 12 months, ordered a probe into Amazon and Flipkart over an alleged violation of anti-trust regulation and discounting. That probe was stayed by a courtroom order final month.