NEW DELHI: 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 e-commerce 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, home-grown Flipkart and Amazon India are leading players in the Indian online retail market place.
Deals beyond a certain threshold require the approval of 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.
“The Amazon Flipkart deal will have to take the approval of CCI in order to sail through. CCI will have to examine the relevant markets and the combined market share of the two parties, which in this case would be around 80 per cent (which) would pose challenges to the deal,” consultancy Corporate Professional’s Founder Pavan Kumar Vijay said.
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 the merger of Flipkart and Amazon might impact the merchants negatively though, as they would have limited bargaining power due to absence of competition among online market platforms.
The group also noted that the merger would also make the resultant entity the biggest harvester of consumer data for online shopping.
“While the merger may result in the rise of a dominant player (approximately 90 percent online market share), it will have limited impact on consumers, who will keep benefiting from the competition among merchants. However, they might have no choice in case of poor grievance redressal or consumer servicing by the platform,” the statement said.
more recommended stories
You can become an attractive personal brand in 2019 if you follow these 7 instructions
The first impression you leave on.
Should Your Small Business Develop a Mobile App?
In 2016, an estimated 62.9 percent of.
Why Corporate Training Is Now A Global Thing In The Industry
Corporate training has emerged as one.
7 benefits of setting short-term goals
Most people set long-term goals such.
How to keep close relationship with the people you admire the most
Have you ever imagined having multiple.
Ideas To Future Proof Your Education Startup
The world of education business is.
HR Laws In India
Human Resource team of the company.
10 Tips for young entrepreneurs to lay down a strong foundation
In the business world, what is.
4 Life lessons that will change the way you live
Sometimes, you get lost and at.
Working hard to become successful?. Follow these 7 universal principles for success
There are many people who think.