New Delhi: In an issued press statement by the sellers’ body All India Online Vendors Association (AIOVA) said the 77% stake acquisition in Flipkart by Walmart in India will affect thousands of sellers on Flipkart. The body has written to the Competition Commission of India (CCI) seeking to change the relevant market in Walmart’s application for combination with Flipkart.
The statement said if the deal materializes, Walmart will control the market on Flipkart.com via B2B companies the same way that Flipkart India Pvt Ltd is currently doing.
“This will affect the business of thousands of sellers who are active on the Flipkart.com marketplace and may also lead to closure of their businesses,” AIOVA said.
“We have requested the Commission (CCI) to change the relevant market of the proposed transaction to “Market of Sellers on Flipkart Marketplace” and consider the combination through that angle as it gives rise to competition concerns on the marketplaces,” it added.
The Walmart officials couldn’t be contacted as they are travelling to a different time zone.
A call and email sent to Flipkart remained unanswered till the time of filing this report.