Walmart’s Flipkart Defies India’s Antitrust Investigation
In a piece of technology news, Walmart‘s Flipkart has filed a legal challenge counter to an antitrust probe.
Moreover, the investigation was on request versus the firm in India. A court filing was also seen in the wake of a similar petition by its competitor Amazon.com Inc.
Last January, the Competition Commission of India (CCI) directed a probe into alleged breaches of competition law along with certain reducing practices by the two e-commerce giants.
On the flip side, a state court put the probe on hold last week at the back of a challenge by Amazon.
According to a spokeperson that knows the matter, Flipkart’s legal filing was aimed at implying the company to be aggrieved by the CCI’s probe order.
The filing will happen days ahead of U.S. President Donald Trump’s visit to India. It will take place amid the U.S. apprehensions about India’s constriction of foreign investment rules for the e-commerce sector.
In its February 18 court trailing, Flipkart contends that the CCI ordered its probe without preliminary evidence that the company’s practices were damaging competition.
The matter will occur in southern Bengaluru city, which is not public.
In a different statement, Flipkart indicated that the CCI order was “perverse (and) passed without any application of mind.”
Persuading The Court To Invalidate The Investigation
Flipkart stated, “Such an order exposes responsible corporate entities … to the rigors of an intrusive investigation prejudicially affecting not only its credibility and reputation but also its commercial prospects.”
The statement was encouraging the court to quash the probe.
However, a spokesman for Flipkart did not mention the subjects of the filing. He stated that it was a “procedural matter.”
Moreover, the hearing takes place next week.
The CCI did not also act in response to a request for comment.
Elsewhere, Amazon and Flipkart have faced denunciation from Indian retailers.
This criticism has accused them of breaching local laws. It is by stacking up billions of dollars of deficits to finance deep discounts besides discerning against insignificant sellers.
On the other side, the firms deny the accusations.
The antitrust investigation was on arrangement after a New Delhi-based trader group complained.
To add, the complaint was regarding the e-commerce giants. They are advocating exclusive sellers and, in turn, damaging industry for other smaller players.
Flipkart revealed that the CCI had “failed in its duty.” It is to bring a close to the inconsequential complaint.
In addition, an investigation might impair the corporation’s reputation, lead to significant administrative time loss and legal costs.
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