The All India Online Vendors Association will challenge the Competition Commission of India's ruling in favor of Walmart Inc.-owned Flipkart India Pvt. Ltd.'s vendor selection process, Reuters reported Jan. 12.
India's competition authority issued a ruling on Nov. 6, 2018, on a complaint brought by the association, stating that Flipkart and rival Amazon.com Inc. selected their merchants and brands in accordance with the law, according to the report.
Citing a release from AIOVA's lawyer, Chanakya Basa, Reuters reported that the group plans to appeal the ruling, accusing Flipkart of using its dominant position to give preferential treatment to some sellers.
In late December 2018, the Indian Ministry of Commerce and Industry announced new regulations that will prohibit online retailers from selling merchandise from companies in which they hold a stake. The new operational restrictions will take effect Feb. 1.
Basa told Reuters that the AIOVA will lodge an appeal to the National Company Law Appellate Tribunal on Jan. 14.
The association also filed a similar complaint against Amazon, saying the Seattle-based company favors sellers that it partly owns.