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Published
May 8, 2018
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CAIT writes to Commerce ministry opposing Flipkart-Walmart deal

Published
May 8, 2018

The Flipkart-Walmart deal which is expect to be completed over the next few days has now got the traders worried, they have sought the intervention of Commerce & Industry Minister Suresh Prabhu in the matter.
 


Earlier, seller’s body All India Online Vendors’ Association (AIOVA) was upset regarding the deal fearing loss in business and had sought clarity from the e-commerce firm regarding the same. It had also requested government to monitor inflow and outflow of funds in marketplaces (like Flipkart) in order to ensure that all the stipulated norms are adhered to and no irregularities take place.
 
Now, the Confederation of All India Traders (CAIT) has made a similar demand to the government alleging that the proposed USD 15 billion Flipkart-Walmart deal will lead to malpractices and predatory pricing in e-commerce.

In a letter to Prabhu, Confederation of All India Traders (CAIT) said, “the sale of Flipkart's Singapore holding company should not be allowed till the time the government frames an e-commerce policy. The government should make it mandatory that such deals can take place only when 75 per cent of the sellers on an e-platform give their assent since they would be the worst sufferers.”
 
"In order to ensure free and fair e-commerce business in the country, we suggest that a policy for e-commerce should be finalised at an early date in consultation with all stakeholders including the trading community," CAIT said as per a PTI report.
 
According to media reports, Flipkart's board had approved a deal to sell a stake of about 75 percent in the company to a group led by U.S. retail giant Walmart for about $15 billion.
 

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