NEW DELHI: An Indian startup's legal challenge against a Walmart unit claiming losses caused by sharp discounting of its products is winning support from other online sellers, in what is shaping as a key test of how the giant retailer operates in the country.
The legal spat has brought to the fore concerns long raised by small traders and a right-wing group close to Prime Minister Narendra Modi's ruling party. They say companies such as Flipkart and Amazon.com deeply discount some products by burning billions of dollars to lure customers onto their sites in the expectation that they will also buy other goods.
Flipkart said in a statement it takes legal compliance seriously and was compliant with Indian law."We are engaged with the supplier to come to a swift resolution," it said. But GOQii last month found Flipkart's website showed the devices on sale for 999 rupees and 699 rupees. The company wrote to Flipkart, saying it was giving"unauthorized" discounts and resorting to"predatory pricing", violating the agreement, its legal notice showed.
Flipkart does not control or influence prices which were determined by such re-sellers, the law firm said, adding that it reserves"the right to institute actions for defamation, both civil and criminal".
Law Law Latest News, Law Law Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »