The Competition Commission of India (CCI) last year ordered an investigation against companies for allegedly promoting selected sellers on their e-commerce platform and using business methods that prevent competition.

The companies deny any wrongdoing and present legal challenges to the investigation in the lower courts and the Indian Supreme Court, saying the CCI does not have enough evidence to pursue the matter.

A three-judge bench of the apex court headed by Chief Justice NV Ramana said companies like Amazon and Flipkart should volunteer for such investigations. “We hope that organizations like Amazon and Flipkart, big organizations, will have to volunteer for inquiry and transparency,” he said. 

“You have to submit and an inquiry has to be conducted.”

Leading players Amazon and Flipkart, in an e-retail market that will be worth $200billion by 2026, did not immediately respond to requests for comment.

The decision is a major setback for both companies, as the Indian Supreme Court’s appeal was seen by the CCI as a last resort to pressurize its investigation.

In the current antitrust case filed by business group Delhi Viapar Maha Singh, the two companies are facing charges of special launches of mobile phones, advertising of selected sellers on their websites and deep discounting methods to end competition.

Amazon and Flipkart asked the Indian Supreme Court to block CCI’s recent request, which asked them 32 questions – including details of the top 100 sellers and best-selling products. Companies say such questions relate to “sensitive” business information.