CCI orders probe against Flipkart, Amazon for alleged deep discounting, preferential listing
New Delhi, Jan 14: Fair trade regulator CCI on Monday ordered a probe against e-commerce majors Flipkart and Amazon for alleged malpractices, including deep discounting and tie-ups with preferred sellers on their platforms.
The order follows a complaint filed by Delhi Vyapar Mahasangh, whose members comprise many traders dealing in smartphones and related accessories.
The traders' body accused the e-commerce firms of anti-competitive practices like preferential listing, exclusive tie-ups and private labels.
In its order, the Competition Commission of India (CCI) said it needs to be investigated whether the alleged exclusive arrangements, deep discounting and preferential listing by online marketplace platforms are being used as an "exclusionary tactic to foreclose competition" and are resulting in an appreciable adverse effect on competition.
Commenting on the order, an Amazon India spokesperson said,"We welcome the opportunity to address allegations made about Amazon. We are confident in our compliance, and will cooperate fully with CCI."
Incidentally, Amazon founder Jeff Bezos is expected to visit India this week.
Meanwhile, a Flipkart spokesperson said they are currently reviewing the CCI order.
"The Flipkart group is fully compliant with all applicable laws and FDI regulations. We take pride in democratising e-commerce in India and giving market access to lakhs of MSMEs, sellers, artisans and small businesses, making quality and affordable goods available to consumers through our transparent and efficient marketplace while creating lakhs of jobs," the spokesperson added.
In its complaint, the trade body alleged that there were instances of several vertical agreements between Flipkart and Amazon and their preferred sellers which have led to exclusion of other non-preferred traders from these online marketplaces.
It has been also been alleged that most of these preferred sellers are affiliated with or controlled by Flipkart or Amazon, either directly or indirectly. Besides, the platforms also gather data on consumer preferences and allegedly use them to their advantage, it added.
"This arrangement has far-reaching consequences on the economy as the non-preferred sellers are relegated to sell only through traditional brick and mortar set-up which involves significant fixed costs and are devoid of wide pan-India reach which online marketplaces offer," it was alleged.
"The Commission observes that the exclusive arrangements between smartphone/mobile phone brands and e-commerce platform/select sellers selling exclusively on either of the platforms, as demonstrated in the information, coupled with the allegation of linkages between these preferred sellers and OPs (opposite parties) alleged by the Informant merits an investigation," the CCI said in its order.
Further, it needs to be investigated whether the alleged exclusive arrangements, deep discounting and preferential listing by the e-commerce platforms are being used as an exclusionary tactic to foreclose competition and are resulting in an appreciable adverse effect on competition, contravening the provisions of the Competition Act, the CCI noted.
The Competition Commission has asked the director general to complete the investigation and submit a report within 60 days.
Praveen Khandelwal, secretary general of the Confederation of All India Traders (CAIT) which is spearheading an aggressive nationwide movement against Amazon and Flipkart, said this CCI order has been long awaited by the traders of the country.
"Both Amazon and Flipkart have left no stone unturned in destroying and devastating the e-commerce and retail trade market by indulging into all kinds of malpractices including causing huge GST and income tax revenue loss to the government. Their autocratic business module has resulted into closure of thousands of shops in the country in last three months," he added.
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Ordinance issued to increase number of Supreme Court judges from 34 to 38
New Delhi (PTI): The government has promulgated an ordinance to increase the strength of the Supreme Court from the present 34 judges to 38, including the Chief Justice of India.
The law ministry notified the ordinance on Saturday, which amended the Supreme Court (Number of Judges) Act, 1956, to increase the sanctioned strength of the top court.
So far, the sanctioned strength of the top court was 34, including the Chief Justice of India (CJI). Now, the number of judges has been increased by four, taking the sanctioned strength to 38.
The top court will now have 37 judges, other than the CJI.
With the apex court having two vacancies at present, and the ordinance coming into force immediately, the Supreme Court Collegium will now have to recommend six names for appointment as judges in the top court.
A bill will be brought in the Monsoon Session of Parliament to convert the ordinance – an executive order – into a law passed by Parliament.
The Union Cabinet had cleared a draft bill on May 5 to increase the number of apex court judges.
The strength of the Supreme Court was last increased from 30 to 33 (excluding the CJI) in 2019.
The Supreme Court (Number of Judges) Act, as originally enacted in 1956, put the maximum number of judges (excluding the CJI) at 10.
This number was increased to 13 by the Supreme Court (Number of Judges), Amendment Act, 1960, and to 17 by another amendment to the law.
The Supreme Court (Number of Judges) Amendment Act, 1986, augmented the strength of judges from 17 to 25, excluding the CJI.
A fresh amendment in 2009 further increased the strength from 25 to 30.
Article 124(3) of the Constitution lists the qualifications required to become a Supreme Court judge.
An Indian citizen who has either served as a high court judge for at least five years, or as an advocate for 10 years, or is a distinguished jurist, can be appointed to the top court.
The strength of the Supreme Court is increased based on the recommendations of the CJI, who writes to the Union law minister. After consulting the finance ministry, the Department of Justice under the law ministry moves the Cabinet with a draft bill.
