Confederation of All India Traders slams Walmart Flipkart deal
The Confederation of All India Traders (CAIT) has filed a petition with the Competition Commission of India (CCI), raising objections to Walmart’s $16 billion acquisition of e-commerce venture Flipkart.
The deal, it argues, would create an uneven playing field and result in predatory pricing, deep discounts and loss funding. “The petition said that Flipkart is a combination of predation, exclusive tie-ups and of preferential sellers where even online vendors face discriminatory conditions and Walmart being the owner by virtue of 77% share is bound to give preference to its inventory,” CAIT says.
It adds: “The deal is bound to circumvent established laws and the FDI (foreign direct investment) policy of the government since the ultimate object of Walmart is to enter the retail trade of the country and in the absence of any policy on e-commerce or retail trade, it would be easy for them to reach out to the retail market.”
According to sources familiar with the matter, the objection does not pose a serious challenge to the acquisition, which is expected to close later this year.
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