‘Known for creating monopolies’: SC on Flipkart, appoints amicus to probe case

The Supreme Court on Tuesday acknowledged that Flipkart, one of India’s leading e-commerce platforms, is “known for creating monopolies” and raised concerns about the survival of smaller players in the market.

A bench comprising Justices Surya Kant and N Kotiswar Singh appointed an amicus curiae to assist in the adjudication of a dispute triggered by a National Company Law Appellate Tribunal (NCLAT) order directing the Competition Commission of India (CCI) to investigate Flipkart’s alleged abuse of its dominant position.

The bench questioned the absence of the complainant, the All India Online Vendors Association (AIOVA), whose lawyers admitted they lacked instructions and hinted the association might have disbanded. The court stressed the need to balance encouraging big investments with protecting consumers and small vendors, highlighting the “serious issue” of monopolistic dominance. Flipkart’s counsel argued that the platform helps small vendors reach a national audience, but the court noted that Flipkart’s aggressive discounting often disrupts smaller businesses and distorts market balance.

The Supreme Court also criticised CCI’s presence in the case through lawyers, stating that as a quasi-judicial body, CCI’s role in litigation should be limited. The matter is now slated for a hearing in August.

This follows a 2020 NCLAT order that overturned a prior CCI decision absolving Flipkart, instead mandating a probe into allegations filed by AIOVA in 2018 regarding Flipkart’s dominant market position in wholesale trading and e-commerce marketplace operations.