Published
Oct 3, 2018
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CAIT continues to petition NCLAT over Walmart's Flipkart acquisition, fears predatory behaviour

Published
Oct 3, 2018

The Confederation of All India Traders (CAIT) has again petitioned the National Company Law Tribunal (NCLAT) over what it sees as Walmart’s history of “predatory behaviour” and NCLAT will review this on October 5.

CAIT continues to petition NCLAT over Walmart's Flipkart acquisition


As reported by the Press Trust of India, CAIT has contacted NCLAT to again voice its concerns over US-based Walmart’s acquisition of the e-commerce giant Flipkart. CAIT has stated that Walmart has engaged in “predatory behaviour” in countries including Germany, Mexico, and South Africa and fears that it will do the same in India.

Walmart International Holdings has responded to CAIT’s claims by stating in its own reply to NCLAT that its business model and activities in India are not the same as Flipkart’s and that Walmart itself cannot sell directly to consumers as per Foreign Direct Investment (FDI) regulations. Walmart and the Walmart Foundation have also both separately vowed to invest heavily in Indian farmers and producers.

CAIT has organised several country-wide protests over Walmart’s acquisition of Flipkart, but so far it has not managed to convince NCLAT or the Competition Commission of India (CCI) that the $16 billion deal (Rs 1 lakh crore) flouts regulations.

Walmart does have some business overlap with Flipkart, but has stated that the "combined market share of Flipkart and Walmart in the market of B2B sales are less than five per cent and the incremental change in the market shares as a result of this transaction is less than 0.5 per cent". 

Where there is overlap in B2B sales, Walmart also stated that the products offered are different with Walmart focusing on food and Flipkart on fashion and electronics.

NCLAT will review the matter on October 5. Walmart has already completed the deal as of August 18 and now holds a 77 percent stake in Flipkart. 

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