An Indian court docket on Friday dismissed an enchantment by Amazon and Walmart’s Flipkart that sought to stall an an antitrust investigation into their enterprise practices – a significant setback for the businesses.

The Competition Commission of India (CCI) final yr ordered a probe following allegations from brick-and-mortar retailers that the US companies promote choose sellers on their e-commerce platforms and use deep reductions to stifle competitors.

The investigation was on maintain for a number of months after corporations challenged it, denying wrongdoing and arguing that the CCI lacked proof, however a court docket allowed it to proceed in June. On Friday, the excessive court docket in southern Karanataka rejected the US companies’ appeals.

“The appeals are nothing but an attempt to ensure that action initiated by the CCI … does not attain finality,” a two-judge bench stated whereas studying the choice in court docket.

“The appeals are devoid of merit, and deserve to be dismissed.”

Amazon and Flipkart didn’t instantly reply to a request for remark.

“This further reinforces that the CCI investigation should continue promptly,” stated Abir Roy of Sarvada Legal which filed the antitrust case towards Amazon, Flipkart on behalf of a dealer group.

The CCI investigation is the newest setback for the companies, that are additionally grappling with more durable overseas funding guidelines and accusations from brick-and-mortar retailers that they circumvent Indian legislation by creating advanced enterprise constructions.

© Thomson Reuters 2021