A court has directed Walmart-owned Flipkart and its sellers Retailnet and Tech-Connect to stop offering GOQii products after the Ratan Tata-backed smart wearables maker alleged damage caused due to deep discounting on the online platform.
In an interim order, the Bombay City Civil and Sessions Court said it is necessary to stop the sellers from selling the disputed products to prevent further unascertainable damages to the plaintiff.
Early this month, in a legal notice sent to Flipkart, GOQii said the deep discounts, which started in May, violated its sales agreement with the online marketplace. It also said such discounting of its products violated the foreign investment policy in e-commerce.
GOQii Tech had an agreement with Flipkart on the sale of its fitness bands. However, when the discounts did not stop even after the legal notice was sent, the company went to court.
GOQii was the second-largest smart band in the Indian market, after leader Xiaomi, for the third quarter of 2018, according to International Data Corporation. Samsung, Fitbit and Apple are the other big brands in this segment, which is growing at 15-20%, driven by awareness about fitness.