NCLAT Sets Aside CAIT’s Plea Against CCI Nod For Acquisition Of Flipkart By US Retail Giant WalmartWalmart and Flipkart (Representative Image)

The National Company Law Appellate Tribunal (NCLAT) on Thursday set aside traders’ body CAIT’s plea against the Competition Commission of India’s (CCI) approval for Walmart’s acquisition of e-commerce major Flipkart.

The appellate tribunal said that the plea by Confederation of All India Traders (CAIT) lacked merit and the association could not establish its allegations against anti-trust body's approval to the deal.

The two-judge bench also observed that the presence of Walmart is likely to add value to the Indian economy.

The US retail giant Walmart Inc picked up a 77 per cent stake in Flipkart for $16 billion in 2018 and CCI in August 2018 had said that it approved the acquisition.

CAIT had said that a small number of sellers were accounting for substantial sales on Flipkart, and with Walmart coming in, the issue would aggravate as Walmart''s goods through preferred sellers would be prioritised and given discounts by Flipkart.

The traders' body has time and again raised its concerns over the alleged bias towards certain preferred sellers along with the issue of deep discounting.

Following its requests, the CCI also ordered an anti-trust probe against e-commerce majors Amazon and Flipkart earlier this year which the Karnataka High Court later stayed.

(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement