A Bench led by Justice Ajay S Oka said the “issue involved in the subject matter” of the CCI’s transfer petition is substantially the same as is at present being heard by the single judge of Karnataka High Court. “Therefore, it will be appropriate if all the petitions which are subject matter of this transfer petition are transferred for hearing to the High Court of Karnataka,” it said.
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The apex court also directed that any future petitions on the issue will be automatically transferred to the Karnataka HC, thus restraining the HCs from entertaining further petitions on the issue. “If similar petitions are hereafter instituted in any other HC, the same shall be also covered by this order,” the bench said.
While Attorney General R Venkataramani informed the bench that five more petitions – three in the Karnataka HC and two in the Punjab and Haryana HC – have been filed, senior counsel AM Singhvi argued that the petitioners (companies before the HCs) were agreeable to have their petitions heard by the Karnataka HC.
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The CCI had preferred bunching together of all pleas on the matter in the Delhi HC if the apex court decides to consolidate the pleas under one high court. It believed that such a step will “minimise any scope of a conflicting ruling on this issue among different high courts.””The underlying subject matter of inquiry before the petitioner, i.e. e-commerce services offered by two of the major platforms, is of great general importance since if any anticompetitive activity is allowed to continue on these platforms, it harms and affects lakhs, if not crores of ordinary people each passing day as these are the ultimate consumers on these platforms,” the appeal stated.
“It is important to note that even though the investigation was to be commenced in 2020, it was substantially delayed, in part due to the stay granted in favour of Amazon and Flipkart in the first round of litigation. Four years have passed, and a final order is yet to be passed in the present case,” the CCI had said in its transfer plea.
In 2020, the CCI had found prima facie merit in Delhi Vyapar Sangh’s allegations about violations of the Competition Act, 2002, by Amazon and Flipkart relating to sale and purchase of mobile phones. It alleged that the online retailers indulged in exclusive arrangements, deep discounting and preferential listings in violation of competition law.
The CCI had ordered a probe by the Director General, which was challenged by Amazon and Flipkart. In September, the Karnataka HC stayed further proceedings against Amazon, prompting all other high courts to pass similar orders.
