Walmart Indian Subsidiary Facing Antitrust Probe

01/16/2020

Flipkart Purchased by Walmart for $16 billion in 2018 is the subject of a probe by the Competition Commission of India.

The Government of India has initiated action against both Amazon.com Inc. and Flipkart claiming violation of competition laws that were enacted after the Walmart purchase preventing direct sale to consumers.

The Government is blatantly protectionist with respect to local on-line retailers that now have advantages against competition from foreign-owned competitors. In 2018 Google was fined $19 million for an alleged abuse of competition rules.

Despite the expectations for a rational market with the advent of Prime Minister Narendra Modi the reality is that India remains an inhospitable environment for foreign investors given the socialist-inclined bureaucracy, inherent xenophobia and a chaotic and corrupt legal system.

 


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