The Supreme Court on Tuesday raised concerns over e-commerce giant Flipkart allegedly creating monopolies, highlighting the potential adverse impact on smaller market players.

A bench comprising Justices Surya Kant and N Kotiswar Singh appointed an amicus curiae to assist in adjudicating a dispute stemming from a National Company Law Appellate Tribunal (NCLAT) directive. The NCLAT had asked the Competition Commission of India (CCI) to initiate a probe against Flipkart for alleged abuse of its dominant position.

The case was originally initiated by the All India Online Vendors Association (AIOVA), which accused Flipkart of engaging in unfair trade practices. However, during the hearing, the bench was surprised to note that AIOVA was no longer actively pursuing the case, as its counsel stated he had no instructions from the organisation, suggesting it may have been disbanded.

Despite the complainant’s absence, the bench made it clear that it intended to examine the larger issue of monopolistic practices. “We want big players to invest in India, but we are also worried about the dragon’s mouth. It’s a serious issue. We must protect the interests of consumers and small players. Some balancing authority is needed,” the court observed.

Responding to arguments from Flipkart's counsel that the platform enabled small vendors to reach a national market, Justice Kant pointed out that deep discounting practices by the e-commerce platform could disrupt the market equilibrium and hurt smaller businesses.

The bench asked AIOVA’s counsel, Advocate Udayaditya Banerjee, to assist the court in the matter, emphasizing the need for a fair hearing even in the absence of the original complainant.

The court also questioned why the CCI, a quasi-judicial body, was represented by counsel in the proceedings. “The CCI has already passed an order—good or bad. Its job is done. Why should the authority be present in the case? Tomorrow, should we ask a High Court to appear in every case?” Justice Kant remarked. The court was informed that a prior Supreme Court directive required the CCI to be represented in all such matters.

The bench scheduled the next hearing for August.

Flipkart had moved the top court challenging the NCLAT’s March 4, 2020, order that overturned the CCI’s earlier decision absolving the company of abuse of dominance. The NCLAT had directed the CCI’s Director General to investigate the allegations.

The original complaint was filed in November 2018 by AIOVA, which accused Flipkart India Pvt Ltd (a wholesale trader) and Flipkart Internet Pvt Ltd (the e-commerce marketplace) of abusing their dominant market positions.