An Indian court on Friday dismissed appeals by Amazon.com Inc (AMZN.O) and Walmart’s (WMT.N) Flipkart that sought to stall an antitrust investigation into their business practices, dealing a major setback to the U.S. firms in a key market.
The Competition Commission of India (CCI) last year ordered an inquiry after allegations from brick-and-mortar retailers that the U.S. firms promoted select sellers on their e-commerce platforms and used to business practices that stifle competition.
The investigation was on hold for more than a year after companies challenged it, denying wrongdoing and arguing that the CCI lacked evidence, but a court allowed it to continue in June. On Friday, the High Court in southern Karanataka state rejected the U.S. firms’ appeals.
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