New Delhi: Traders' body CAIT on Sunday demanded scrutiny of the proposed USD 12-billion Flipkart-Walmart deal, claiming that it will promote loss funding and predatory pricing in e-commerce sector.
It is really unfortunate that in spite of having a clear FDI policy, foreign companies are finding an escape route, whether it is in retail or e-commerce, Confederation of All India Traders (CAIT) said in a statement. The traders' body took a strong objection to the Walmart-Flipkart deal and demanded the government to form a regulatory authority for e-commerce and till the authority is formed, no such deal should be allowed.
The comments assume significance as global retail giant Walmart is inching closer to sealing the deal to buy a majority stake in Flipkart for as much as USD 12 billion, even though rival Amazon is still jostling to turn the deal in its favour. The Flipkart buy may be one of the largest deals in the retail sector and by far, the biggest in the country's booming e-commerce market.
"This (Walmart-Flipkart) deal should not be allowed since it will encourage more loss funding and predatory pricing on e-commerce which is already gripped with malpractices," CAIT said.
It also alleged that Walmart after failing to enter India in retail sector through FDI has chosen e-commerce route, which will be quite harmful for the trading community....