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India: Traders file petition with CCI to block Walmart-Flipkart US$16b buyout

By  |  May 28, 2018

 

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    Raising serious objections against the US$16 billion Walmart-Flipkart deal, India’s largest trading community on Monday, May 28, filed a petition with Competition Commission of India (CCI), reported Reuters.

    Walmart, which is the world’s largest retailer, will create an unfair competition and uneven level playing field and will indulge in predatory pricing, deep discounts and loss funding, the traders body Confederation of All India Traders (CAIT) announced in a press release Monday. “The petition further 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 said.

    Amazon’s presence in India means that a Walmart-Flipkart alliance would not be a threat to competition, a CCI official said. However, the deal could be politically sensitive because it might affect small and medium-sized traders, added the official, who declined to be named because he is not authorized to speak to the media.

    Full Content: Reuters

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