
According to the legal notice, a copy of which is with TOI Tech, Flipkart has alleged that Bhawani has illegally used its trademark, domain name, and artistic work on amazonvsflipkart.com. The notice says that Flipkart anticipates that the use of its artwork and intellectual property could create confusion among the public.
Probably they're suing for the logo because maybe they couldn't sue him for the name. To be fair, starting up a domain 'amazonvsflipkart.com' and comparing them- but expecting trouble at any point? At the very least the domain name shouldn't have had flipkart's name unless you want them to knock at your door. I've seen some SEO guys suggesting names that have established brand's name. It does help in getting some traffic but at some point someone in the legal department saying that this needs to be handled. They're not wrong. It's their brand name. They own it. Would you like if some started somethingvsyourwebsite.com???
Taking a jab and running google ads/affiliate codes doesn't really help either. They're obviously going to find a way not only to shut you down, but also see if they can force you to transfer domain ownership to them in exchange to settle the matter.
But this article link also shows a different perspective:
Reason: yahoo