Thread by @barandbench

Karnataka HC is hearing two petitions moved by Amazon and flipkart seeking to quash the probe ordered by the Competition Commission of India (CCI) against them for alleged violations of Competition Law.

@Flipkart
@amazonIN
@CCI_India

Bench: Mr, Gopal Subramanium, your written submissions is bigger than the Writ petition. I only want bullet points.

Snr Advocate Gopal Subramanium appearing for Amazon: That can be kept aside for now, your lordships.

Subramanium: My villainy is on the basis of one document- one email. This email is me giving a rebate for a seller, it is on the referral fee and not the price.

This is given to a seller and not a consumer.

#Flipkart
#amazon
#CCI

Subramanium: Where is preffered seller and deep discounting here?

This document does not even remotely substantiate the allegations against me, mentioned in CCI order.

Subramanium: The informant relies and furnishes an incomplete document before CCI saying that Online sales is higher than Offline.

But he was deleted the most important line in the doc. The last line of the doc says that - Offline channel continues to dominate sales by 60%

Subramanium: This is a little important. This is on how CCI functions.
The argument on glorified online sales is not entirely accurate, he adds.

He adds that discounts are done even in offline channel, during festive season. This is up to the seller.

Why should CCI rely on one email and one incomplete document?, Subramanium.

Courts asks the relationship of Amazon with Cloudtail and Appario.

Subramanium: The allegation against me is that I own Cloudtail and Appario. Cloudtail is a subsidiary co, of a holding co, Prione. I hold 24% of the shares in the holding company.

Not me, but the entity Amazon, adds Subramanium.

The complainant alleges that Cloutail and I have common directions. This is incorrect: Subramanium.

Bench: According to you, the complainant has gone to CCI with the allegation that there is some connection between you and Cloudtail, Appario

Subramanium: Yes, your lordship, he is basing it on the point that I and Cloudtail have common directors. He did this so that notice may he issued in the matter before CCI

Subramanium: The exact allegation is that I prefer those two sellers (preferred sellers) as they are related to me.

Another allegation is deep discounting. I am not giving any discounts to consumers.

I dont offer discounts to any consumer.

What I showed you earlier was discount given by me to a seller, that too in referral fee: Subramanium

The sellers are shown to consumer based on an algorithm. Let me give a small example, a consumer wants a pen - so based on the algorithm different sellers will appear.

This is a consumer friendly algorithm.

Sellers are shown based on the price, delivery etc, he adds

Subramanium: There is one director common to Frontizo (Appario) and Amazon Retail India Pvt Ltd. Frontizo is holding company of Appario Retail

Amazon group company has 24% of the shares in Frontizo

But Amazon Retail India is not the entity in question, it is not the marketplace entity. The petitioner in the present plea is Amazon Seller Services: Subramanium

Subramanium: Amazon Retail India sells retail food items made in India based on govt approval. In fact, this goes on to show non-application of mind by the Commission: Subramanium

Matter adjourned to Friday.