The Karnataka HC begins hearing two petitions moved by Amazon and Flipkart, seeking to quash the probe ordered by the CCI for alleged violations of Competition law.

@amazonIN
@Flipkart
@CCI_India
ASG Madhavi Divan appears for CCI.
Divan informs the Court on all allegations against Amazon and Flipkart - Predatory pricing, deep discounts, preferred sellers, Amazon and Flipkart selling their own private labeled brands/inventory at discounts.
Non preferred sellers are pushed down in search results as preferred sellers are given a priority. (Such as Appario and Cloudtail) : Divan
Several exclusive tie ups with smart phones present. This brings exclusivity. Other competitors are eliminated. This is violative of 19 (3) of Competition Act : Divan
Discounting practices have impact on offline market also. Will affect economy as a while.

High entry barriers in online market as Flipkart and Amazon hold 80% space in relevant market: Divan
Parent company of Flipkart, Walmart was found abusing its dominant position in various jurisdictions such as Germany, Australia etc.

Such issue is there is India with respect to models and patterns. Through investigation required in this case : Divan
Thorough*
Dominant positions of Amazon and Flipkart affect MSMEs : Divan
Divan now speaks on the relationship between Amazon and Appario and Cloudtail.

Relevant docs show connection. The latter are the preferred sellers of Amazon : Divan
Idea is not to improve our case. Whatever criteria I need to meet for forming a prima facie opinion, I have met.

But I cannot leave the allegations made by Amazon and Flipkart : Divan
Divan speaks on deep discounts offered by Amazon and Flipkart.

Exclusive Agreements by Amazon and Flipkart with smartphone companies. During Big billion days and Great Indian Festival large discounts are offered : Divan
On Preferred sellers.

Divan : The imp aspect to be looked into is whether there is any manipulation of algorithm to favour Appario or Cloudtail
There appears to be a link between Amazon and these companies. There appears to be link, a connection.

The Question is whether Appario is a preferred seller : Divan.
Matter adjourned to March 19

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More from @barandbench

19 Mar
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1. Women are physically weak and need protection.
2. Women are incapable of or cannot take decisions on their own.

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#ParliamentQuestion Number of Contempt cases instituted by the Supreme Court
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