CCI approves Walmart- Flipkart $16-bn deal
CCI approves Walmart- Flipkart $16-bn deal

CCI, in the most awaited order, has approved the combination of Walmart and Flipkart, holding that the $16-bn deal is unlikely to create AAEC in India. 

As a result, Walmart will hold approx 51%-77% of outstanding shares of Flipkart. 

On examination, CCI concluded that:

  • The market share of Walmart in B2B sales in India is less than 0.5% and thus, the incremental changes are insignificant.
  • There is no AAEC irrespective of the relevant market as all B2B sales or narrower B2B market on the basis of a particular category of products.
  • The majority concerns raised by traders and retailers had no nexus to competition dimension. As a result, it could not consider the same.
  • The issues concerning FDI would require policy intervention to ensure that e-platforms remain marketplace accessible for all.
  • The deep discounting and preferential treatment to select e-tailers are not specific to the acquisition, as Flipkart is already prevalent in the market even without Walmart. Though, if any, action may be taken in future. 

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