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‘Flipkart-Amazon combine may face scrutiny from CCI’

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The possible coming together of online retailers Amazon and Flipkart is likely to face close scrutiny on competition issues, as the combined entity will be a dominant player in the fast-growing Indian ecommerce market, according to experts.

While there is no formal announcement from any quarter on the possible multi-billion dollar deal, reports indicate that discussions involving Flipkart and Amazon are going on. Engaged in intense competition, homegrown Flipkart and Amazon India are leading players in the Indian online retail marketplace.

Deals beyond a certain threshold require the approval of the Competition Commission of India (CCI), before they are consummated. In cases where the watchdog finds possible anti-competition issues, it can call for remedial measures to address the concerns.

There have been instances where the anti-trust regulator had given approvals for mega deals, subject to strict conditions. Not-for-profit group CUTS (Consumer Unity and Trust Society) International said that the merger of Flipkart and Amazon might impact the merchants negatively though, as they would have limited bargaining power due to the absence of competition among online market platforms.

Meanwhile, Flipkart said that it has set up a new campus at Embassy Tech Village in Bengaluru, consolidating its other offices in the city as part of its ‘Better.together’ theme.┬аThe campus, spread over 8.3 lakh sq feet, has a seating capacity of over 7,300 people. (DH)

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