Bengaluru, October 21: Looking at the uncertainty in the business environment in the country, Walmart chief executive Doug McMillon has written to Prime Minister Narendra Modi seeking some certainty and predictability. According to an Economic Times report, the local units of both the US companies Walmart and Amazon are facing probes over their alleged roles in predatory pricing in India at the moment.
The changes in the foreign direct investment rules for e-commerce marketplaces came in late 2018 and Walmart was in particularly upset because the new rules came into effect just after the e-commerce giant paid $16 billion to acquire Flipkart. Amazon And Flipkart Set Deadlines to Stop Use of Single-Use Plastics in Packaging.
The letter highlighted Walmart’s commitment to India, including investments to empower small and medium enterprises, global sourcing from the country and job creation that it would do here in the future, even as he called for a stable environment.
During the ongoing festive season, both Amazon and Flipkart are offering huge discounts to lure customers. The local traders have alleged that the e-commerce giants are carrying out predatory pricing. Commerce Minister Piyush Goyal has assured that the government will look into the matter and both the entities have been warned of strong action against them if are found out to have broken the law.