Walmart it seems has found itself drawn into a legal struggle between its recent purchase Flipkart and GOQii an Indian maker of smart watches health devices over pricing. GOQii claims in its Lawsuit Against Flipkart filed last month that Flipkart has been selling their wearable devices at 70 percent discount from the retail price, much more than the two sides had agreed to. Flipkart, for its part, has denied any wrongdoing, noting that the discounts were put into place by third-party sellers on their marketplace. The case Lawsuit Against Flipkart will next be heard coming Friday of this week.
The spat has exposed a long-running dispute within in the Indian commerce landscape and concerns that firms Flipkart and Amazon use their power to loss-lead to trap customers to their sites in the hopes they will buy other items while they are shopping there.
It will set a example if the final decision goes against Flipkart for greedy pricing, said Salman Waris, a partner at TechLegis Advocates & Solicitors. Small traders’ associations and other startups may take other marketplaces accepting deep discounting strategy to court.
And GOQii looks like it will soon have partners in lawsuit. The All-India Online Vendors Association said in a statement released to Reuters that it plans to file a plea to join GOQii’s case against Flipkart. It note it is doing this on behalf of the over 3,500 merchants on its marketplace. Flipkart, for its part, noted 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…
With a 19% market share, GOQii was the 2nd major player in India’s so-called wearable’s market last year, data from industry tracker IDC showed in December. The market leader remains China’s Xiaomi, with Samsung a small player.