New Delhi: The Supreme Court on Tuesday observed that it wants big players to come and invest in the country, but at the same time, it is worried about the dragon's mouth. A bench led by Justice Surya Kant said that Flipkart, an e-commerce major, was known for creating monopolies and did not mince words to express its concern regarding the issues faced by the smaller players in the market.
The bench, also comprising Justice N Kotiswar Singh, observed, “We want big players to come and invest here, but at the same time we are worried about the dragon's mouth...”. The bench stressed that it is a serious issue, and we have to keep the interests of consumers and small players in mind. “Some balancing authority is needed," said the bench.
The bench decided to appoint an amicus curiae to assist it in the adjudication of the dispute arising out of a National Company Law Appellate Tribunal (NCLAT) order asking the fair-trade regulator, Competition Commission of India (CCI), to initiate a probe against Flipkart for an alleged use of its dominant position.
The bench wondered why the complainant, All India Online Vendors Association (AIOVA), which alleged unfair trade practices by Flipkart, was nowhere, as its lawyers had no instructions from the body.
A counsel informed the bench that AIOVA might have been disbanded or no longer existed. The bench told Flipkart's counsel that it would like to examine the issue of creating a monopoly.
Flipkart’s counsel contended that due to the platform, many small vendors were able to take their businesses to the national level.
The bench said that sometimes Flipkart offered so many discounts that it disrupted the business of small players and the balance of the market. The bench asked advocate Udayaditya Banerjee to assist the court in the matter, saying otherwise it would be an uneven fight.
The apex court has scheduled the matter for further hearing in August.
The AIOVA, in November 2018, moved before the CCI alleging abuse of market dominance by Flipkart. In March 2020, Flipkart challenged the order of the NCLAT, which asked the CCI to initiate an investigation against Flipkart for an alleged use of its dominant position.
The tribunal set aside an order passed by the CCI, which absolved Flipkart of unfair practices using its dominant position. It directed the CCI to ask its probe arm director general to investigate the allegations.
