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CAIT files petition against Walmart-Flipkart deal in Competition Commission of India

The Confederation of All India Traders (CAIT) filed an objection petition in Competition Commission of India against Walmart-Flipkart deal.

Confederation of All India Traders (CAIT) filed its objection petition in Competition Commission of India (CCI) against the Walmart-Flipkart deal via CAIT Advocate Abir Roy.

CAIT National President BC Bhartia and Secretary General Praveen Khandelwal informed that in its petition, the CAIT has strongly objected the merger of two companies. It has, in its petition, also said that Walmart, which is world’s largest retailer, would create an unfair competition and uneven level playing field and indulge in predatory pricing, deep discounts and loss funding.

The petition further said that Flipkart is a combination of predation, exclusive tie-ups and of preferential sellers, where even online vendors face discriminatory conditions. Walmart being the owner by virtue of 77% share is bound to give preference to its inventory. There will be denial of market access to non-preferred sellers coupled with complete annihilation of small time traders on offline platform.

Walmart, arguably world’s largest retailer in the market, would sell its inventory on the platform of flipkarts website. It would either sell its inventory directly or through a web of associated preferred sellers with the result that their market share would rise exponentially. Pure offline retailers / wholesalers would have two options either exit the market or sell their goods on flipkarts website and face discriminatory terms and conditions from the same in comparison to its preferred sellers. This will create an unhealthy competition much to the disadvantage of both offline and online sellers.

It was also submitted that access to vast resources of data to be used for targeted advertisements for consumers as also creating private label and sell the same through preferred sellers. This transaction would result in vertical integration, which no other player in India would have. The combined entity would have affiliates in the entire supply chain. The complainant apprehends that the deal is bound to circumvent established laws and FDI policy of the government since the ultimate object of Walmart is to enter the retail trade of the country and in the absence of any policy on e-commerce or retail trade, it would be easy for Walmart to reach out to retail market, which otherwise it cannot enter due to FDI policy.

Capital is a huge entry barrier (due to the manner, in which the said market has evolved) and even established players would find it difficult to enter this market unless they are fine with burning cash. In sum and substance, the said transaction would result in removal of several competitor or competitors in the market. It would soften the competition, to a great extent. The CAIT, which is India’s largest body of trading community representing about seven crore traders across the country, has prayed to dis-allow the transaction between Walmart and Flipkart.

CAIT has below enlisted the grounds on objection against Walmart-Flipkart deal.

GROUNDS FOR OBJECTIONS AGAINST WALMART-FLIPKART DEAL

  • Flipkart has a leading market share across certain product categories (like smartphones and fashion) through a combination of predation (which they have admitted in a tax proceedings), exclusive tie ups and preferential sellers. The market presence would be further augmented once the said transaction takes place. This would lead to adverse effect on both offline market and online markets: 

Offline markets: The offline retailers/ wholesalers would not be able to compete with the said conglom-erate due to lack of funding.

Online market: Due to the prevalent market practices, small traders have to partner with e-commerce players like Flipkart but they have to face discriminatory conditions. This fact would be accentuated since Flipkart would, probably, give preference to inventory of Walmart.

Both Walmart and Flipkart have a demonstrated history of engaging in predation, which they would con-tinue in India, resulting in foreclosure to other offline retailers/wholesalers.

  • Walmart, arguably world’s largest retailer in the market, would sell its inventory on the platform of flip – kart.com either directly or through a web of associated preferred sellers with the result that their market share would rise exponentially and pure offline retailers / wholesalers would have two options: (i) exit the market or (ii) sell their goods on flipkart.com and face discriminatory terms and conditions from flipkart. com in comparison to its preferred sellers.

 

  • There is no level playing field on flipkarts platform. There is a clear case of discrimination which is there between preferential sellers and other sellers in terms of commission, discounts etc. which would be further accentuated because of this transaction. There is a clear case of denial of market access for these non-prefer-ential sellers on online platform coupled with complete annihilation of small time trader on offline platform.

 

  • Flipkart and Walmart have access to vast amounts of data, which they would use for targeted advertise-ments for consumers. They would create private labels (on the lines of Smart buy etc.) for products, which are fast moving (based on data analytics) and sell the same via their preferred seller network. These pre – ferred sellers, like WS Retail, Retailnet, Omnitech Retail, SupercomNet are only on the platform of Flipkart and not on any other platform.

 

  • The present modus operandi is very clear: Flipkart purchases goods and sells at discounted prices, while incurring a loss, to few sellers like W.S. Retail, Retailnet, Omnitech Retail which are further sold on the plat-form of Flipkart. Flipkart purchases goods and sells at discounted prices, while incurring a loss, to few sellers like W.S. Retail, which are further sold on the its platform.

 

  • Furthermore, there are important competition concerns regarding Walmarts role on Flipkarts B2B plat-form. With Walmart, a global retail giant with its own range of multi-brand products, attempting to take another shot at the Indian market, there is a high likelihood of Flipkart and Walmart would affect other wholesalers on the platform and eliminating them in the long run. In several cases global search engines have been shown to use certain algorithms to favour their partners or services in searches and there is a possibility for Flipkart to increase listings for Walmarts inventory or propagating a search bias for Walmart? inventory in its platform.

 

  • Similar to the entire modus operandi of preferential sellers, they may create preferential sellers with better commissions / discounts in order to augment the sale of Walmarts inventory. This would have an adverse effect on competitors in both the online and offline market, both at the B2B level and B2C level.

     

    • In addition, Flipkart (through its subsidiary, Myntra) has launched private labels, which are Myntra Fash-ion Brands on which they are sold at high margins, and Flipkart also controls the sales, marketing and dis-tribution of their products. The sellers of these private brands are also preferential sellers of Flipkart, thus eroding the very concept of level playing field.

     

    • This transaction would result in vertical integration, which no other player in India would have. The combined entity would have affiliates in the entire supply chain. The Complainant apprehends that the deal is bound to circumvent established laws and FDI policy of the government since the ultimate object of Walmart is to enter the retail trade of the country and in the absence of any policy on e-commerce or retail trade, it would be easy for Walmart to reach out to retail market, which otherwise it cannot enter due to FDI policy.

     

    • Capital is huge entry barrier (due to the manner in which the said market has evolved) and even established players would find it difficult to enter this market unless they are fine with burning cash.

     

    • In sum and substance, the said transaction would result in removal of several competitor or competitors in  the market and would  soften the    competition, to a great extent. 

     

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Entertainment

I’m known for small and mid-budget films, so I can never enter 300 crore club: Ayushmann Khurrana

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Elina Nayak | India

Ayushmann Khurrana

Ayushmann Khurrana is back with an action drama, ‘An Action Hero’. And the trailer of the film is a promising one, a real genre-bender for Ayushmann fans. The movie also has Jaideep Ahlawat playing the lead alongside Ayushmann. So when asked to comment on how many big stars are doing two-hero films these days, Ayushmann, who has always teamed up with actors playing strong characters, said, “Be it Annu Kapoor’s character in ‘Vicky Donor, Rajkummar Rao in ‘Bareilly Ki Barfi’, Gajraj Rao in ‘Badhai Ho or Tabu in ‘Andhadhun’, all these characters were equally strong along with mine. So, I’ve never followed the trend. I work with actors who contribute to a film. Ultimately, it’s the film that’s a winner.”

Moreover, Ayushmann finds inspiration in Ajay Devgn. “I take a lot of inspiration from Ajay Devgn sir. Like in his film ‘Golmaal’, most of the punch lines were with other cast members, still he did the film. It’s important to keep your film before yourself. A good film is all about a collaboration between the actors, directors and everyone else.”

Ayushmann is one of the finest actors in Bollywood. But ask him if he ever feels the pressure of delivering hits, he said, “I always scout for fresh content. And have a tick list – like has this subject been done in Hindi cinema before? Is the subject original and pathbreaking? But once I do the film, I leave it to the audience whether to accept it or not. I want to give it my best in whatever I do. So, I don’t think I’ll ever be known for a 300 crore film. I’m known for small and mid-budget films. Hence, I can afford to take risks without pressure.”

Also read: If I’ve a genuine friendship with someone, that relationship is still labeled and that affects me: Kartik Aaryan

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Constitution day | Bet you didn’t know these interesting facts about the Indian Constitution

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Avani Arya | Reporter : Shamanand Tayde | Nagpur

Constitution Day is also known as “National Law Day”. It is celebrated in India on 26 November every year to commemorate the adoption of the Constitution of India. Know some interesting facts about the Indian Constitution in the video.

सभी को पता है कि India को 15 अगस्त 1947 को independence  मिली थी.साल 1949 में 26 नवंबर यानी आज ही के दिन india  का constitution  बनकर तैयार हुआ था. India का constitution  26 जनवरी 1950 से लागू किया गया था. इसके साथ ही भारत में हर साल 26 नवंबर को constitution day  मनाया जाता है. India का constitution  दुनिया के सभी constitutions को परखने के बाद बनाया गया था. इसलिए इस constitution को सबसे Important constitution कहा जाता है. 

Indian Constitution से जुड़े ऐसे कई Interesting Facts हैं, जिनके बारे में जानकर आप हैरान रह जाएंगे. भारत देश के citizen होने के नाते बच्चों से लेकर बड़ों तक, हर किसी को Constitution Of India से जुड़े ये Interesting Facts  जरूर पता होने चाहिए.

क्या आप जानते है कि  Indian Constitution  World’s Longest Constitution  है. Indian Constitution को लिखने के लिए  dr. Bhimrao Ambedkar को  Father Of Indian Constitution भी कहां जाता है.  डॉ. भीमराव आंबेडकर ने Constitution  को दो साल, 11 महीने और 18 दिनों में तैयार कर India को dedicate किया था. इसके कुछ हिस्से America, Germany , United Kingdom , Australia , Ireland , Canada  और Japan  के Constitution  से लिए गए हैं.

26 नवंबर 1949 को Indian Constituent Assembly की तरफ से इसे अपनाया गया और 26 नवंबर 1950 को इसे एक democratic government system के साथ लागू किया गया था. बाबासाहेब आंबेडकर के योगदान को याद करने और constitution के importance का प्रसार करने के लिए constitution day  मनाया जाता है. Indian Government  की ओर से पहली बार 2015 मेंconstitution day  मनाया गया. 29 अगस्त 1947 को भारत के constitution का draft  तैयार करने वाली Committee की स्थापना हुई. जिसमें chairmen  के रूप में डॉ. भीमराव अंबेडकर appoint हुए. जवाहरलाल नेहरू, डॉ राजेन्द्र प्रसाद, सरदार वल्लभ भाई पटेल, मौलाना अबुल कलाम आजाद भी इस सभा के main members  थे.

क्या आप यह जानते है कि Indian Constitution  में 448 Articles, 22 Parts, 12 schedule और 97 amendment हैं. Indian Constitution की दो copies  हाथ से लिखी गई हैं, जोकि Hindi  और English  language में हैं. इसमें किसी भी तरह की typing या print का use नहीं किया गया था. दोनों handwritten copies पर 24 जनवरी 1950 को उस समय के 284  members of parliament के सामने Signature किए गए थे. Indian Constitution को बनाते समय कई देशों के  Constitution को study किया गया था. हमारे constitution  में देश के citizens के fundamental rights, Duties
 और government machinery के बारे में Detailed Information  दी गई है. इसमें ये बताया गया है कि President, Prime Minister , Governer  और Chief Ministers  की क्या powers हैं और किस तरह से Legislature, executive और Judiciary काम करती है.

Constitution  बनने से पहले भारत में British government  की ओर से  बनाया हुआ act 1935 लागू किया जाता था. Indian Constitution के rules  के मुताबिक Republic Day के मौके पर राष्ट्रपति और Independence Day के मौके पर pm देश को addressed करते है.

तो यह थे Indian Constitution से जुड़े कुछ Interesting Facts

Script by – Shamanand Tayde

Also Read: ‘Pakistan Zindabad’ slogans raised during Rahul Gandhi led Bharat Jodo Yatra, claims Madhya Pradesh CM Shivraj Chouhan

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‘Pakistan Zindabad’ slogans raised during Rahul Gandhi led Bharat Jodo Yatra, claims Madhya Pradesh CM Shivraj Chouhan

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Avani Arya | Nagpur
“Pakistan Zindabad” slogans were being raised during Congress’ Bharat Jodo Yatra, claimed Madhya Pradesh CM Shivraj Singh Chouhan on November 25.

Madhya Pradesh CM Shivraj Chouhan, Bharat Jodo Yatra leader Rahul Gandhi

“Pakistan Zindabad” slogans were being raised during Rahul Gandhi led Bharat Jodo Yatra, claimed Madhya Pradesh CM Shivraj Singh Chouhan on November 25. He also said that he has ordered a probe into the incident.

Earlier that day, BJP leaders alleged that partakers in the Yatra shouted ‘Pakistan Zindabad’ in Khargone, Madhya Pradesh. A controversy flared up after BJP State President VD Sharma and other party leaders shared a video on social media claiming that ‘Pakistan Zindabad’ slogans were raised during the rally.

Calling it a conspiracy by the BJP against Rahul Gandhi, Congress Party denied the claims. Yatra entered Madhya Pradesh on its 77th day of the Padyatra on November 23.

Covering a total distance of  3,570 km, Congress claimed that Bharat Jodo Yatra is the longest march on foot by any Indian politician in the history of India. It started from Kanyakumari on September 7, and will end in Kashmir next year.

Also Read: Kejriwal accuses PM Modi of waving off huge loan defaulters ‘behind closed doors’

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