CAIT files petition with CCI to block Amazon deal to acquire Cloudtail
The Confederation of All India Traders (CAIT) has filed a petition before the Competition Commission of India (CCI) to stop e-commerce major Amazon from fully acquiring Cloudtail.
CAIT in its petition has stated that Amazon’s acquisition of Cloudtail is a violation of foreign direct investment norms in the country.
“The petition provides evidence to show Cloudtail charges less fees/commission and is a preferential seller on the platform, and with its 100 percent acquisition, Amazon will cause an adverse effect on the market,” CAIT said in a statement.
“The proposed deal raises some concerns from the viewpoint of competition law. This transaction is not only in violation of competition law but is also a violation of FDI norms,” it added.
Amazon currently has a 24 percent stake in Cloudtail, while Catamaran Ventures, NR Narayana Murthy’s private investment firm, has a 76 percent stake in it.
Amazon had sought CCI’s approval to acquire the 76 percent stake that was held by Catamaran Ventures.
Online retailer Cloudtail India Private Limited was set up in August 2014 and offers over 30 lakh products with over 6,000 unique vendors and over 11,500 brands, according to its website. The business also works to being micro, small, and medium enterprises into the online space and works with over 700 registered MSMEs.
Copyright © 2022 FashionNetwork.com All rights reserved.