The $16 billion Flipkart-Walmart deal will create an uneven playing field in the country’s commerce sector and will be challenged through an appropriate authority, CNBC reported citing CAIT. Digitally powered e-Walmart will certainly vitiate the e-commerce and retail market. There will be an uneven level playing field to the disadvantage of retail traders and only the venture capitalist, investors and promoters will be benefitted and not the country, CAIT had earlier said.
The acquisition of 77 percent stake in homegrown e-tailer Flipkart by global retailer Amazon is a clear attempt to control and dominate the retail trade in India by Walmart through e-commerce in the long run, the Confederation of All India Traders (CAIT) said post deal.
“The owner can squeeze and dictate anything. It is much more difficult for the government to control and regulate foreign owned platforms and all indigenous players will have no value if a foreign company runs the platform,” PTI had earlier reported citing CAIT.
The government should put the deal in abeyance and carry out close scrutiny of the deal, CAIT asked. There is also a need to urgently frame a national policy for e-commerce and constitute a regulatory authority to regulate e-commerce business in India and till such time, the trader body added.
“We believe that some e-commerce companies in India have not been adhering to the guidelines issued under the Press Note 3 of the FDI Policy for marketplaces. These companies have been directly or indirectly participating in pricing and discounting, which is against the policy that seeks to create a level playing field,” PTI reported citing Retailers Association of India.