wordpress blog stats
Connect with us

Hi, what are you looking for?

Domestic ecommerce cos against FDI policy deadline extension; NCLAT reserves judgment on CAIT petition against Flipkart-Walmart

Domestic e-commerce firms Snapdeal, Shopclues, Shop101 and others have written to the Department of Industrial Planning and Policy (DIPP) and the Commerce Minister Suresh Prabhu opposing the deadline extension of February 1, when the new FDI in e-commerce policy comes into effect. This was reported by the Economic Times. According to the report, industry officials have told ET that the government was looking at a possible extension of 2 months.

The companies have also supported the government for clarifying the rules on FDI in e-commerce. Small online sellers like Limeroad, Wooplr, and Fynd have also written to the ministry, raising concerns over any deadline extension.

The FDI in e-commerce policy disallows e-commerce players to control inventory of the vendors. Additionally, vendors which are owned and controlled by the e-commerce company cannot trade on the marketplace. The policy will impact global e-commerce players like Walmart-owned Flipkart and Amazon, who would have to change their business structures to comply with the new policy, which was announced late in December.

Traders’ bodies have opposed deadline extension

Traders’ bodies CAIT and Swadeshi Jagran Manch have voiced their opposition against any deferral of the deadline.

  • Earlier this month, Amazon and Flipkart asked that the deadline be extended by 4 and 6 months respectively, leading to traders’ opposition.
  • It was reported last week that the US government has voiced its concerns over the new regulations to Indian government officials, and was pushing for the regulation to become a bilateral issue between US and India.

Immediately after, CAIT wrote to PM Narendra Modi against any deadline deferral, and urged him and Prabhu not to give in to the “pressure tactics” of global e-commerce companies. CAIT said that the new rules would enable “crores of families who have been adversely impacted economically” to return to business in a “fair environment.”

NCLAT judgment on CAIT’s petition against the Flipkart-Walmart deal

Last week, the National Company Law Appellate Tribunal (NCLAT) concluded hearing and reserved judgment [pdf] in the CAIT petition against the CCI approval of Walmart’s acquisition of Flipkart. A two-member bench of the tribunal consisting of Justices SK Mukhopadhaya and Bansi Lal Bhat concluded the hearing after noting submissions from both CCI and CAIT.

Advertisement. Scroll to continue reading.
  • Late in August 2018, the CAIT had appealed to the NCLAT, the appellate body for India’s anti-trust regulator CCI, asking for reversal of the Flipkart-Walmart deal. In August last year, the CCI gave a go ahead to Walmart’s acquisition of a 77% stake in Flipkart for $16 billion. CAIT appealed that the deal would lead to capture of the retail market by Walmart-Flipkart, owing to their predatory pricing and deep discounting structures.
  • Soon after, CAIT also appealed the Delhi HC asking that Flipkart’s business model be investigated, claiming that it harmed small sellers on the platform.
  • CAIT had opposed the deal in May (before it was approved), and filed a petition with the CCI saying that Walmart will create unfair competition, uneven the existing level playing field and indulge in predatory pricing, deep discounts and loss funding.

Written By

I cover health, policy issues such as intermediary liability, data governance, internet shutdowns, and more. Hit me up for tips.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

A viewpoint on why the regulation of cryptocurrencies and crypto exchnages under 2019's E-Commerce Rules puts it in a 'grey area'

News

India's IT Rules mandate a GAC to address user 'grievances' , but is re-instatement of content removed by a platform a power it should...

News

There is a need for reconceptualizing personal, non-personal data and the concept of privacy itself for regulators to effectively protect data

News

Existing consumer protection regulations are not sufficient to cover the extent of protection that a crypto-investor would require.

News

The Delhi High Court should quash the government's order to block Tanul Thakur's website in light of the Shreya Singhal verdict by the Supreme...

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ