Quashing complaints from more than 100 trader organisations who opposed the historic Walmart-Flipkart deal as it will cause “irreversible damage” to small traders and endanger jobs o grounds of FDI regulations, CCI held that these concerns had no connection to the competition dimension of the proposed combination and hence, outside the purview of the Commission’s powers. The CCI noted that though these concerns may warrant a policy intervention, but as of now these fell outside the jurisdiction of the Competition Act. Therefore, the CCI approved the combination as not having any adverse effect on competition.
It further stated that the discounting practice of Flipkart and its preference to select e-tailers in its online marketplaces are not specific to the proposed combination, as these are “already prevalent” in the market even without the proposed acquisition by Walmart. The CCI will only take cognizance of those issues which arise out of Section 3 and Section 4 of the Competition Act. . The CCI said that the said order can be revoked at any time of the information provided by Walmart is found to be incorrect and misleading.
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