TIL Desk/Business/New Delhi/ Traders’ body CAIT has told the NCLAT that Walmart has been found “guilty of predatory behaviour” in countries like Germany, Mexico and South Africa and “may repeat such behaviour in India” through its acquisition of online major Flipkart.
The Confederation of All India Traders (CAIT), which has challenged the CCI’s approval of Walmart’s USD 16 billion acquisition of Flipkart, in its reply filed before the NCLAT has said that the US retail major “may cause an appreciable adverse effect on competition” in the domestic market post combination as its “predatory tendencies” would be on \Ron a much larger scale .
Wal-Mart International Holdings Inc, however, in a separate reply has said its business model and activities in India were different of Flipkart’s. Moreover, on account of FDI restrictions, Walmart India can not engage in selling directly to consumers.
Even in business segments, where there is an overlap with Flipkart, Walmart said the “combined market share of Flipkart and Walmart in the market of B2B sales are less than five per cent and the incremental change in the market shares as a result of this transaction is less than 0.5 per cent”. It further said that product offerings of Walmart and Flipkart are different in B2B sales where there is an overlap.
