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Flipkart's discounting practice not specific to Walmart-Flipkart merger deal, is 'already prevalent' in market: CCI

Updated: Aug 13, 2018 10:25:56am
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Flipkart's discounting practice not specific to Walmart-Flipkart merger deal, is 'already prevalent' in market: CCI

New Delhi, Aug 13 (KNN) After clearing the global retail giant Walmart's USD 16 billion acquisition of Indian e-commerce giant Flipkart, the Competition Commission of India (CCI) took note of concerns relating to deep discounting and preferential treatment to select sellers on the marketplace. CCI said that the complaint about Flipkart's discounting practice or preference to select e-tailers is not specific to this merger deal and is "already prevalent" in the market.

It also made it clear that there is no bar on the regulator to examine these issues under relevant provisions of the Competition Act about anti-competitive agreements and abuse of dominance.

CCI has approved Walmart’s proposed USD 16-billion acquisition of a majority stake in online marketplace Flipkart, paving the way for the biggest deal in the country's corporate history.

Many brick and mortar retailers had been opposing the deal and had threatened to go to court against the decision.

Wal-Mart International Holdings, Inc. (Walmart), a subsidiary of Walmart Inc., had sought CCI approval for acquisition of 51-77% of Flipkart.

Some of the traders' bodies have decided to approach the Court against the deal. Traders' bodies like CAIT and Swadeshi Jagaran Manch had approached CCI earlier fearing negative impact on local traders due to the deal.

In its 12 page detailed order, the CCI has said it is "not likely" to have an appreciable adverse effect on competition in India.

It also said that a majority of the concerns expressed by various trade organisations on the impact of the deal in the country are beyond the scope of the CCI Act.

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