Anti-Competition Case To Be Filed Against Flipkart; CAIT Says FDI Rules Violated By Walmart!
As per CAIT, Walmart and Flipkart both are violating FDI rules of India.
Offline traders and merchants all across India have joined forces against the mega e-commerce deal between Flipkart and Walmart.
Led by The Confederation of All India Traders (CAIT), the offline traders are now mulling a formal complaint with CCI or Competition Commission of India, and the basis would be FDI or Foreign Direct Investment regulations of India.
As per CAIT, Walmart and Flipkart both are violating FDI rules of India.
If they win this case, then the deal has to be called off.
CAIT: Flipkart-Walmart Are Breaking FDI Rules!
In a strongly worded statement, CAIT has accused ruling BJP party of shielding foreign firms and destroying Indian businesses.
CAIT has joined forces with other associations of offline traders, and a formal complaint against the Flipkart and Walmart will be filed with CCI.
CAIT had already made it clear that they won’t hesitate from taking a legal route to stop the Walmart Flipkart deal.
Last week, Walmart had approached CCI for getting their final approval for acquiring 77% stake in Flipkart. If CCI acknowledges CAIT’s complaint and admits that Walmart is breaking FDI rules, then the deal can have some major negative consequences.
CAIT Secretary General Praveen Khandelwal said,
“The CAIT as a first step is moving to Competition Commission of India for filing its objections to Walmart deal,”
Actually, All India Online Vendors Association (AIOVA) and CAIT have already filed a complaint against Flipkart for abusing their dominant position in the wholesale trade. A formal complaint against Walmart shall be filed today.
What Is The Main Complaint? Is Flipkart Anti-Competition?
As per CAIT, once Walmart enters India via Flipkart route, then local and domestic traders would suffocate, as they won’t be able to counter the might of Walmart.
Besides, the complaint is also regarding violating FDI rules and circumventing the law by acquiring a company. FDI in B2C is still not allowed in India.
On the other hand, All India Online Vendors Association (AIOVA) has filed a complaint against Flipkart’s WS Retail for using their dominant position and influencing the sale of their own retailers.
They claimed that
“preferential treatment and discriminatory conduct is killing many independent sellers who depend on its platform for their livelihood”.
As per Anti Competition laws of India, a wholesaler cannot be partial towards their own subsidiaries for selling a product.
BJP Govt. is being blamed for ‘allowing MNCs’ to enter India, and destroy local traders.
CAIT said,
“It appears that government has taken a U-turn on its declared commitment.”
Do you think that Indian Govt. should adopt protectionism and block entry of Walmart in India? Do let us know by commenting right here!
