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.
Deals beyond a certain threshold require the approval of Competition Commission of India (CCI) before they are consummated. “The Amazon-Flipkart deal will have to take the approval of CCI in order to sail through,” consultancy Corporate Professional’s Founder Pavan Kumar Vijay said. “CCI will have to examine relevant markets and the combined market share of the two parties, which, in this case, would be 80% [which] would pose challenges to the deal,” he said.