CCI defends probe against Amazon; says company's claim unfounded

CCI counsel told Karnataka High Court that law gave the commission full jurisdiction to investigate Amazon for potential anti-competitive activity

The Competition Commission of India told Karnataka High Court on Thursday that Amazon's claim that the commission did not follow due process in its probe against the company and rival Flipkart is a "mischievous one". The CCI argued that the company was trying to misguide the court.

Senior counsel Harish Narsappa who appeared for CCI at the court said that Amazon was trying to tell the court that the CCI was overstepping its jurisdiction with the investigation order. "Amazon does not become immune to following laws of this country just because it is following FDI laws," said the counsel, as mentioned in a report in The Economic Times.

Narsappa said the law gave CCI full jurisdiction to investigate the company for potential anti-competitive activity. Amazon had claimed that the CCI did not approach it before its January 13 order, to which CCI said that the discretion on whether or not to invite all, any or none of the parties before investigation laid on the commission.

The CCI also said that an ecommerce market study that came out five days before the commission's probe order against Flipkart and Amazon clearly stated that the issues it had identified might "directly or indirectly have a bearing on competition", as mentioned in the report.

The CCI's arguments come a day after Amazon told the court that the commission did not have prima facie evidence to order an investigation into it.

Also read: CCI orders antitrust probe against Amazon, Flipkart

Also read: Amazon Inc challenges CCI investigation; says will cause 'irreparable loss' to company