Flipkart Sellers Sue Indian Antitrust Watchdog Amid Competition Investigation

Three online sellers operating on Flipkart, owned by Walmart, have filed lawsuits against the Indian antitrust authority following an investigation that found them, along with Flipkart and Amazon, in violation of competition laws.

The antitrust probe, concluded in August, revealed that Amazon and Flipkart, along with some sellers and smartphone brands, provided undue preference to select online vendors and prioritized certain listings. Flipkart stands as one of India’s largest e-commerce platforms, competing closely with Amazon.

To challenge the findings, the three sellers—CIGFIL Retail, Wishery Online, and Xonique Ventures—have submitted petitions to the High Court of Karnataka. They seek to “set aside” the investigation report and halt the ongoing process by the Competition Commission of India (CCI). These lawsuits could potentially delay the investigation, which began in 2020 after complaints from traditional retailers under the Confederation of All India Traders.

Amazon and Flipkart deny any wrongdoing and assert their compliance with local laws. The sellers argue that during the investigation, they were asked to provide data, only to be later named as accused parties, which they claim violates due process.

In their court filings, the sellers described the investigation as “arbitrary, opaque, and unfair.” Their cases are set for a hearing likely next week.

Neither Flipkart nor the CCI responded immediately to requests for comment. Additionally, last week, a former seller from Amazon filed a lawsuit against the CCI, successfully obtaining an interim injunction to prevent the investigation from moving forward. This seller’s filing contended that they were not given proper notice before being named as an accused party in the case.

As the legal battles unfold, the implications for the e-commerce landscape in India could be significant, especially as the CCI continues to scrutinize competitive practices in the rapidly growing digital marketplace.