Mumbai court bans Flipkart from selling Goqii products
today May 28, 2019
Flipkart is no longer allowed to retail Goqii smart wearables on its platform, a Civil Court in Mumbai ruled. Goqii had accused Flipkart of wrongfully deep discounting its products on its platform.
Goqii Technologies’ founder Vishal Gondal told TNN on May 27 that a Mumbai court had passed an order to ban Flipkart from selling Goqii products, including through sellers. The Indian smart wearables business had stated in a legal notice on May 18 that Flipkart’s decision to deep discount its products had led its other customers to cancel orders over pricing which had harmed the start-up’s business. Goqii also accused Flipkart of flouting its contract terms with Goqii and breaking foreign direct investment regulations.
“The Bombay civil court today directed that it is necessary to grant ad-interim order against sellers Retailnet, Tech-connect and Flipkart from selling Goqii Products to prevent further unascertainable damages that are going to be caused to Goqii owing to online deep discount sale,” Gondal said in a statement, as reported by TNN.
Flipkart is now expected to respond to the court order banning it from selling Goqii products. The Times of India had reported on May 27 that Flipkart had already approached the Department for Promotion of Industry and Internal Trade and the Competition Commission of India to protest its innocence. Flipkart maintains that it has neither violated its contract with Goqii nor FDI regulations with its business practices.
The case is expected to be a landmark case for Indian start-ups in the context of the new government FDI regulations that came into effect in February. As Flipkart is now owned by the US-business Walmart, its business falls under FDI regulations.
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