Indian traders body CAIT up in arms over Walmart-Flipkart deal

Cornelia Mascio
Mag 17, 2018

To help us crack the puzzle of the $16-billion Walmart-Flipkart deal, will the protagonists or the stakeholders answer these 10 questions please? "The government should closely monitor each passage of the deal since its not a merger of two companies but will have greater ramifications on retail trade and economy", said Mr Khandelwal.

At a time when Flipkart is looking to consolidate its business after being acquired by United States retail giant Walmart, the Indian e-commerce giant has managed to reduce its losses by more than half. The deal values the 11-year old Indian e-commerce firm at Dollars 20.8 billion.

The trade body also believes the transaction will create an uneven playing field for the brick and mortar retailers apart from allowing, what it said, Walmart's "hidden agenda" of reaching out to the offline trade via e-commerce.

Confederation of All India Traders (CAIT) said that its team of lawyers are studying the deal and very shortly CAIT will move to appropriate Authority.

When contacted, Flipkart did not respond to emails. Surely, it could have done things differently, possibly like Amazon did-starting an online business on its own in India. ".and till such time, the deal should be put in abeyance by the Government and a close scrutiny should be held in the entire deal", it added. ".whoever controls the platform, controls data and digital intelligence".

As of now, no future plans have been shared by the company or Walmart as to what customers can expect.

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