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 tussle between GOQii, a seller of smartwatch-type health devices, and Walmart’s Flipkart unit comes just months after India imposed stricter rules for foreign investment in e-commerce that were aimed at deterring such sharp discounts.

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