Will Flipkart-Walmart deal lead to predatory pricing? Here’s what traders’ body CAIT is saying

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Published: May 7, 2018 4:30:12 PM

Traders' body CAIT today said it seeks Commerce & Industry Minister Suresh Prabhu's intervention in the proposed USD 12-billion Flipkart-Walmart deal, saying the alliance will "encourage" malpractices and predatory pricing in e-commerce.

Flipkart, walmart,  Amazon, flipkart stake, Competition Commission of India, SoftBank Vision Fund, Bengaluru, NaspersTraders’ body CAIT sought Suresh Prabhu’s intervention in the Flipkart-Walmart deal.

Traders’ body CAIT today said it seeks Commerce & Industry Minister Suresh Prabhu’s intervention in the proposed USD 12-billion Flipkart-Walmart deal, saying the alliance will “encourage” 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 traders’ body argued that 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.

Moreover, it claimed that such a deal will “encourage malpractices, loss funding and predatory pricing in e-commerce” in the absence of any monitoring mechanism and create an uneven level playing field where offline and online traders will be unable to compete.

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