Corporate governance advisory firm InGovern Research Services has urged Finance and Corporate Affairs Minister Nirmala Sitharaman to initiate a new investigation by the Competition Commission of India (CCI) against e-commerce giants Flipkart and Amazon. The recommendation comes in light of growing suspicions that the ongoing probe might have been compromised.
InGovern Research Services, in its formal communication, which was shared with Commerce and Industry Minister Piyush Goyal, the SEBI Chairperson, and the CCI Chairperson, highlighted a grave breach of trust that could potentially undermine the integrity of the ongoing investigation. The concern stems from the fact that a former member of the CCI investigation team joined Flipkart in March 2023.
The CCI has been actively investigating both Flipkart-Walmart and Amazon since 2020, probing allegations of market monopolisation and anti-competitive practices. These allegations encompass issues such as preferential treatment for select sellers, and abuse of dominant market position.
Shriram Subramanian, Founder & Managing Director of InGovern Research Services, said it had officially approached the Finance and Corporate Affairs Minister regarding this matter.
“There is need for appropriate measures to examine whether the investigation was compromised,” Subramanian told businessline when contacted.
According to InGovern’s findings, Anku Sharma was a key member of the CCI team tasked with investigating Flipkart. Sharma’s association with CCI lasted from March 2017 to January 2022, during which time the investigation against Flipkart was underway. Subsequently, he joined Spice Route Legal, a Bengaluru-based law firm, as Associate Director - Competition and Antitrust. However, in March 2023, Sharma, in a surprising move, joined Flipkart–Walmart as an Antitrust – Subject Matter Expert.
InGovern has argued that there is significant risk that the integrity of the CCI’s investigation may have been compromised during Sharma’s tenure within the CCI’s investigation team. The sequence of events raises doubts about the impartiality of the investigation, and as a result, InGovern calls for all findings made during Sharma’s tenure to be considered as potentially compromised.
In 2022, the CCI conducted dawn raids on the top sellers on prominent e-commerce platforms, including Amazon and Flipkart, as part of its ongoing efforts to ensure fair competition in the e-commerce market. This latest development has added another layer of complexity to the investigation, prompting calls for a comprehensive re-evaluation of the entire process.