The Confederation of All India Traders (CAIT) has filed an appeal petition in the National Company Law Appellate Tribunal (NCLAT) against the decision of the Competition Commission of India (CCI) to clear the Walmart-Flipkart deal.
The CCI, on August 8, had unconditionally approved the proposed combination of Walmart and Flipkart.
In the appeal, the CAIT has asked for the reversal of CCI’s order. Despite repeated objections from CAIT, the CCI had denied it the opportunity of being heard, said the traders’ body in a press statement.
“Passing an order without hearing CAIT, which will be affected by the combination, shows a gross misstep on the part of CCI and is a violation of natural justice principles,” the release said.
The CAIT has alleged that the proposed combination will lead to a huge degree of vertical integration in the market since Walmart is a global retail giant with its own range of multi-brand products. CAIT further argued that in the B2B market, the deal will affect other wholesalers on the platform, eliminating them in the long run. Preferred sellers will receive commissions and discounts which will not be available to other sellers on the platform.