After signing the biggest e-commerce deal in the world, Walmart and Flipkart are facing serious hurdles that could drastically change the form of the transaction. Competition Commission of India (CCI) is likely to suggest structural changes in the deal and Walmart would have three options before it. It could either not accept the structural changes suggested by the fair trade regulator, and back out of the deal. The second option could be to renegotiate the deal at a lower valuation. And the third could be challenging the CCI ruling in the courts.
However, CCI is not the only hurdle that Walmart needs to cross. traders’ associations representing neighbourhood or mom and pop stores have been agitating aggressively too. While the Union government has been opposed to foreign direct investment in multi-brand retail, thereby keeping the like of Walmart out, the government has not shown any resistance to the Walmart-Flipkart deal. According to Praveen Khandelwal of Confederation of All India Traders (CAIT) traders planning an all-India protest on July 2 with the support of powerful and influential people.