In a major relief to two of India’s leading eCommerce platforms, Karnataka High Court has stayed the Competition Commission of India’s (CCI) investigation into Amazon and Flipkart for eight weeks.
Both the companies were under the competition watchdog’s scrutiny for allegedly having exclusive partnerships with brands, influencing prices, offering deep discounting and having preferred sellers on the platform.
Commenting on this decision from the Karnataka High Court, an Amazon spokesperson said: “While we welcome and respect the decision of the Hon’ble High Court of Karnataka, this is just a step in the legal process. We are confident about our compliance.”
For those who are unaware, the Competition Commission of India (CCI) had ordered a probe into Amazon Seller Services and Flipkart Internet last month after it received complaints from trader body Delhi Vyapar Mahasangh.
Last year, both the companies faced a major regulatory hurdle in India as a ban was imposed on exclusive sales, cashback promotions, as well as some restrictions on discounts.
Both Amazon and Walmart have invested heavily in the Indian market given that it is one their largest markets. While Amazon has invested more than $5 billion in its India business, Walmart acquired majority stake in Flipkart for about $16 billion in 2018.
However, the probe hasn’t impacted Amazon’s planned investment in the Indian market. It recently infused another ₹2,500 crore in the Indian market in two of its subsidiaries — Amazon Seller Services and Amazon Data Services.
During his recent visit to India, Amazon’s founder and CEO Jeff Bezos promised to invest another $1 billion in its India operations with an aim to digitise small sellers and drive exports worth $10 billion by 2025.