The Competition Commission of India (CCI) announced a probe in January 2020 into Amazon and Flipkart following a complaint from a trader group which alleged they were promoting some "preferred sellers" and in turn hurting business for other, smaller sellers.

The companies denied any wrongdoing and obtained a stay from a court last year.

The High Court in the southern state of Karnataka on Friday dismissed the petitions by Amazon and Flipkart to quash the probe, Abir Roy, a lawyer for the opposing Indian trader group told Reuters, effectively paving the way for restart of the investigation.

(Reporting by Aditya Kalra in New Delhi; Editing by Sanjeev Miglani)