The Flipkart-Walmart Deal in India: A Look into Competition and Other Related Issues

What is it about?

The Competition Commission of India approved India’s highest-valued acquisition, Flipkart by Walmart, within the first phase of investigation itself, stating that it is “not likely to have an appreciable adverse effect on competition in India.” Unlike many other retail acquisitions, there has been strong protest from the traders and retailers’ organization to stop the deal and for the creation of an exclusive e-commerce policy and regulator. Meanwhile, the Draft National E-Commerce Policy, 2018, suggested greater regulatory scrutiny for mergers and acquisitions that may distort competition. In this context, the present study looked into the competition dimension of the deal and other related issues. The study suggests to evolve a regulatory system with long-term vision to sustain and support the domestically grown innovations while making the competition assessment more flexible to accommodate the challenges posed by digital revolution.

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Why is it important?

The study is important in the context of sustaining and supporting the domestically grown innovations/business.