Wal-Mart International Holdings, Inc. (Wih), Usa
Case brief
What is this about?
The Competition Commission of India examined a proposed acquisition of Flipkart shares by Walmart. The Commission assessed horizontal and vertical overlaps and third-party representations but concluded the merger was unlikely to harm competition due to low market shares and existing competitive dynamics, approving the combination under Section 31(1) of the Act.
What did the court decide?
The proposed combination between Walmart and Flipkart is approved under Section 31(1) of the Competition Act, 2002.
What the court decided
Fair Competition For Greater Good
C OMPETITION COMMISSION OF INDIA (Combination Registration No. C-2018/05/571)
08th August, 2018
Notice under sub-section (2) of Section 6 of the Competition Act, 2002 filed by Wal-Mart International Holdings, Inc.
CORAM:
Mr. Sudhir Mital Chairperson
Mr. Augustine Peter Member
Mr. U. C. Nahta Member
Legal representatives: Shardul Amarchand Mangaldas
Order under sub-section (1) of Section 31 of the Competition Act, 2002
A. Combination
- On 18th May, 2018, the Competition Commission of India ( Commission ) received a notice under sub-section (2) of Section 6 of the Competition Act, 2002 ( Act ) given by Wal-Mart International Holdings, Inc. ( Walmart ), a subsidiary of Walmart Inc. for acquisition between 51% and 77% of the outstanding shares of Flipkart Private Limited ( Flipkart ) and matters incidental thereto ( Proposed Combination ). The notice was given pursuant to the execution of a Share Purchase Agreement on 9th May, 2018 by and among Walmart and certain shareholders of Flipkart ( SPA ); and a Share Issuance and Acquisition Agreement on the same day by and among Walmart and Flipkart ( SIAA ).
Issues for consideration
3 issues framed by the court
Whether the acquisition of Flipkart shares by Walmart would cause an appreciable adverse effect on competition in the relevant markets.
Whether the concerns raised regarding pricing practices are a consequence of the proposed combination falling under Section 6 of the Act.
Whether the proposed combination alters the horizontal or vertical market structure in B2B sales and online marketplaces.
Parties & counsel
- petitioner
Wal-Mart International Holdings, Inc.
- respondent
Competition Commission of India
Coram
Sudhir Mital
Case details
As recorded by the court registry
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