Lawstreet Journal

All India Online Vendor’s Association Writes a Letter to the CCI Challenging Flipkart’s Acquisition of Walmart India

Lawstreet Journal 30 Jul 2020 5:34pm

Image courtesy: Lawstreet Journal Business All India Online Vendor’s Association Writes a Letter to the CCI Challenging Flipkart’s Acquisition of Walmart India

Less than a week after the announcement of the Flipkart – Walmart India deal, the retail giant is facing problems in acquiring the cash-and-carry business of Walmart. The All India Online Vendor’s Association (AIOVA), which is an alliance of online sellers, has complained to the Competition Commission of India (CCI) regarding the mega acquisition, on the ground that the acquisition will lead to preferential treatment to some sellers that will result in high discounts being offered by Flipkart to its customers.

The letter sent by the AIOVA to the CCI said that the AIOVA “firmly believes that as per the directions of the NCLAT the Director-General has commenced the investigation against the opposite parties (Flipkart India Pvt. Ltd. and Flipkart Internet Pvt. Ltd.).” The acquisition “will result in foreclosure of non-preferred sellers,” and “closure of small Kirana shops which proved to be life savior during the pandemic,” it added.

AIOVA has said that currently, Flipkart is under investigation by the CCI for allegedly using unfair trade practices such as abusing its dominant position, which is in violation of Section 4 of the Competition Act. Therefore, the acquisition deal cannot be concluded, it added. In March, the probe against Flipkart was initiated by the CCI on the directions issued by National Company Law Appellate Tribunal (NCLAT).

Learned Counsel Chanakya Basa told that the accusations were made by the body in 2018, at the time when Walmart had acquired Flipkart. The CCI had given a clean chit to Flipkart in its order dated 2018, though;… Continue Reading...

Tagged: Flipkart   Walmart  
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