The competition watchdog is examining a fresh complaint against Walmart-owned Flipkart over allegations that it has created a market-wide mechanism that enables a select group of preferred sellers to sustain deep discounts through financial and operational support.
Earlier CCI cases against Flipkart focused on investor-funded discounts, favoured sellers, and exclusive launches. This complaint goes further, claiming that Flipkart created a larger system that generates financial gains and directs them to a few chosen sellers. This allows sellers to offer prices below cost in ways independent sellers cannot match. The complaint was filed this week before the Competition Commission of India (CCI) by the Forum for Internet Retailers, Sellers and Traders (FIRST), an initiative of the India SME Forum. Mint explains what the complaint is about and how it differs from previous antitrust proceedings.
Q 1) What does the complaint say?
The complaint alleges that Flipkart has created what it describes as a ‘recurring subsidy pool’ by generating financial gains through tax-related benefits and operational efficiencies across its group entities. These gains are allegedly routed to a select group of preferred sellers through incentives, logistics, warehousing, fulfilment and wholesale arrangements, enabling them to consistently sell products below cost, according to FIRST. The complaint argues that this creates an uneven playing field for independent sellers who do not have access to similar support. These are allegations made by the complainant and have not been established by the CCI.
The complaint also defines the relevant market as the online retail distribution and sale of goods through e-commerce platforms in India and alleges that Flipkart commands 50-60% of India's e-commerce gross merchandise value (GMV), citing the Flipkart-Bain & Company report, How India Shops Online 2026.
Q 2) How is this different from earlier CCI cases?
Previous investigations into Flipkart primarily examined allegations of preferential treatment for select sellers, exclusive product launches and deep discounting funded by investor capital or linked to specific product categories, such as smartphones. The new complaint seeks a wider examination of what it describes as the mechanism through which Flipkart allegedly finances and sustains discounting across its marketplace. Instead of focusing only on pricing behaviour, it argues that the entire ecosystem, ranging from wholesale procurement and logistics to fulfilment and tax-related financial gains, works together to support preferred sellers.
Q 3) Who are the preferred sellers?
Although over 1.4 million sellers are registered on Flipkart's marketplace, only 33 preferred sellers allegedly receive the operational and financial benefits that enable them to engage in aggressive pricing, the complaint stated. Further, the complaint contends that these sellers receive advantages through warehousing, logistics, fulfilment and other support services, allowing them to offer prices that smaller sellers cannot match. Among the preferred sellers named in the complaint are OmniTech Retail, SuperCom Net, TrueCom Retail, RetailNet, Vision Star, Flashstar Commerce and Flashtech Retail.
Q 4) What does FIRST want CCI to do?
Filed under Section 19(1)(a) of the Competition Act against Flipkart Internet Pvt. Ltd and its group entities, including Flipkart India Pvt. Ltd, Myntra, Cleartrip, Ekart Logistics and parent Walmart, the complaint seeks a detailed CCI investigation into alleged abuse of dominant position and anti-competitive agreements. It urges CCI to direct its director general, under Section 26(1), to probe Flipkart's marketplace operations, preferred sellers, self-preferencing practices, logistics and fulfilment network, and the alleged ‘recurring subsidy pool’ that it claims is used to finance sustained deep discounting across the platform.
Q 5) Has Flipkart faced similar scrutiny before?
Yes. Flipkart and Amazon have been under regulatory scrutiny for several years over allegations of preferential treatment for select sellers, deep discounting and exclusive product launches. In 2020, CCI ordered an investigation into both companies following complaints from trader bodies. Separately, the Enforcement Directorate is also investigating alleged violations of foreign direct investment (FDI) rules in e-commerce.
The latest complaint, however, attempts to shift the focus from individual discounting practices to the underlying marketplace structure that allegedly enables such pricing.
Q 6) What’s next?
CCI will first examine whether the complaint discloses a prima facie case under the Competition Act. If it is satisfied that further examination is warranted, it may direct its director general to conduct a formal investigation under Section 26(1). At this stage, the complaint represents allegations made by the informant, and the commission has not reached any findings on their merits.
"If a marketplace is structured in a way that gives a handful of sellers an unfair advantage, consumers may initially benefit from lower prices, but reduced competition eventually limits choice and can weaken price discovery. A level playing field for all sellers is ultimately in the long-term interest of consumers as well," said Ashim Sanyal, managing trustee of Consumer VOICE.
"Flipkart operates in compliance with all applicable laws and regulations and will cooperate with any regulatory process, as required. Flipkart today enables more than 1.4 million sellers, most of them MSMEs, FPOs and small businesses, to reach customers across India, and we remain focused on creating value for sellers, consumers and the broader digital commerce ecosystem,” Flipkart said in response to a Mint query.