New Delhi : Protesting against the Competition Commission of India (CCI) approving the Walmart-Flipkart deal as damaging to the larger interest of the Indian economy, the Confederation of All India Tradefrs (CAIT) has convened its national government council meeting in Nagpur on August 19(Sunday) to finalise a nationwide movement against the deal.
In a joint statement, CAIT President B. C. Bhartia and Secretary General Praveen Khandelwal said the confederation is also moving the court against the CCI approval while seeking appointments with Union Finance Minister Piyush Goyal and Commerce Minister Suresh Prabhu to intervene.
They accused the CCI of overlooking the CAIT petition clearly pointing out how the combination of Walmart and Flipkart would lead to a huge degree of vertical integration in the market since Walmart is a global retail giant with its own range of multi-brand products and its tieup with Flipkart would affect the wholesalers, eliminating them in the long run.
The petition feared that the new combination would use several methods such as creation of algorithms perpetuating a search bias in favour of Walmart, and the creation of preferred sellers who would be receiving commissions and discounts which would not be available to other sellers. CAIT’s concern is that offline retailers or sellers would not be able to compete with the combined power of Flipkart and Walmart due to their deep pockets.