Walmart faces test in India after start-up challenges Flipkart discounts

New Delhi — An Indian start-up’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.

With a 19% market share, GOQii was the second-biggest player in India’s so-called wearables market in 2018, data from industry tracker IDC in December shows. The market is dominated by China’s Xiaomi, with Samsung a small player. Flipkart is just a business-to-business wholesale venture that sells goods to resellers, its law firm, Shardul Amarchand Mangaldas, said in its response seen by Reuters.

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