Karnataka HC dismisses plea by Amazon, Flipkart to quash CCI probe

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New Delhi, June 11 | In a major blow to e-commerce giants Amazon and Flipkart, the Karnataka High Court has dismissed their plea to quash an anti-trust investigation by the Competition Commission of India (CCI).

Consequently, both the companies will face investigation under Section 3 of Competition Act.

In January last year, the fair market watchdog had ordered an enquiry into the operations of both Amazon and Flipkart on multiple counts, including deep discounts and exclusive tie-up with preferred sellers.

In its order, CCI had said that it needs to be investigated whether the alleged exclusive arrangements, deep discounting and preferential listing by Amazon and Flipkart are being used as an exclusionary tactic to foreclose competition.

Also, the anti-trust body had added that it needs to be seen if such practices are resulting in an appreciable adverse effect on competition, contravening the provisions of Section 3 (1) read with Section 3(4) of the Competition Act.

“In view of the foregoing, the Commission is of the opinion that there exists a prima facie case which requires an investigation by the Director General (DG), to determine whether the conduct of the OPs (Amazon and Flipkart) have resulted in contravention of the provisions of Section 3(1) of the Act read with Section 3(4) thereof, as detailed in this order,” the CCI order had said.

Commenting on the High Court decision, the Confederation of All India Traders (CAIT) said: “It fully vindicates the stand of CAIT that Amazon and Flipkart business model is entirely based on violating the FDI policy, rules and other laws and therefore without wasting any more time, the CCI should immediately begin its probe.”

Source: IANS

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Weekly Fundamental Market Outlook

Weekly Fundamental Market Outlook

Indian share market posted its first weekly gain in Jun by rising 2.7%.

This week, the Indian Stock Market rebounded strongly and ended with first weekly gain of 2.7% in June as a drop in commodity prices offered some relief from broadening inflationary pressures. Copper prices, which are often seen as a bellwether for economic output due to their wide range of industrial and construction uses, are heading for their worst week in a year, while oil prices have dropped over concerns of slumping demand.

While the US recessionary fears are still at the forefront, but the slide in commodity prices has lifted the mood of stock market.Cheaper oil is usually beneficial for oil-importing countries such as India.

Domestically, on sectorial basis, Auto and FMCG are the top gainers, while Metal index is the top losers. On stock basis, Hero MotoCorp, Eicher Motors, Hindustan Unilever, Maruti Suzuki and M&M were the top gainers and Tata steel, UPL, Reliance Industries, hindalco Inds and Coal India were the top losers.

In the next week, investors will keep a close eye on crude oil price movement, commodity prices, US economic activity and the geopolitical development.

 

Post Disclaimer by BhaskarLive.in

The information contained in this post is source form the news agency or PR agency. We do not take any responsibility of accuracy of information. We have not made any modification or changes in original source content. This information only for general information purposes only. The information is provided by BhaskarLive.in and while we Endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.

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