Flipkart-Walmart India deal: Online seller lobby AIOVA moves CCI against mega acquisition

Online seller lobby All India Online Vendors Association (AIOVA) has reached out to the Competition Commission of India (CCI) against the mega acquisition of Walmart India by Flipkart announced last week. AIOVA said that the acquisition cannot be allowed as Flipkart is still being investigated for alleged unfair business practices through misuse of its dominant position. The letter sent by AIOVA to CCI on Monday read that AIOVA “firmly believes that as per the directions of the NCLAT the Director General (of CCI) has commenced the investigation against the opposite parties (Flipkart India Private Limited and Flipkart Internet Private Limited).” A copy of the letter was seen by Financial Express Online.

AIOVA had reached out to CCI in 2018 alleging abuse of dominant market position by Flipkart, however, CCI had quashed its claim. The impugned order was challenged by AIOVA before NCLAT but was set aside by latter in March this year and was directed back to CCI for investigation.