The Competition Commission of India’s (CCI’s) investigation against Amazon and Flipkart and the legal challenge to this move by the two companies are likely to set a precedent for the competition watchdog’s approach towards business models of e-commerce platforms. The decision is also likely to affect other markets based on similar models, such as radio taxi services and food service aggregators, said competition law experts.
In its January 13 order, the Competition Commission argued that the business models of the e-commerce platforms under investigation threaten to cause “appreciable” adverse effect on competition.
The order said that “exclusive launch, coupled with