09:01 GMT04 August 2020
Listen Live
    Business
    Get short URL
    120
    Subscribe

    The step comes in wake of persistent pressure put up by over 60 million small retailers who alleged that the e-commerce giants have been selling products at predatory rates and that their business transactions are not transparent.

    New Delhi (Sputnik) — The Indian government has tightened the rules for e-commerce companies like Flipkart and Amazon for selling products in the Indian market.

    Issuing a notification on Wednesday, India's Ministry of Commerce and Industry announced that from February 2019, no e-commerce firm will able to sell products of the companies in which it has stakes. The notification also prohibits the e-commerce companies from entering into an agreement with brands for the exclusive sale of products. 

    READ MORE: Indian Court Issues Notices to Amazon, Flipkart for Violating Rules

    "An entity having equity participation by e-commerce marketplace entity or its group companies, or having control on its inventory by e-commerce marketplace entity or its group companies, will not be permitted to sell its products on the platform run by such marketplace entity", a statement issued by the ministry reads.

    The Confederation of All India Traders has welcomed the move.   

    "It's a big achievement after a long struggle. If it is implemented in proper spirit, malpractices and predatory pricing policy and deep discounting by e-commerce players will be a matter of past", Praveen Khandelwal, general secretary of the Confederation of All India Traders, said.

    READ MORE: India’s Anti-Trust Watchdog Clears $16Bln Walmart-Flipkart Deal

    Khandelwal, however, said that an e-commerce policy is the need of the hour, as is also a regulatory authority for e-commerce in India. 

    Indian retailers allege that they have been under immense strain, especially after American retail giant Walmart acquired a controlling stake in India's Flipkart at $16 billion in May 2018.

    Related:

    E-commerce Firms Eye Big Gains as India Mulls Adapting Commercial Use of Drones
    India, Russia Joint Statement Likely on FTA, New Delhi Against E-Commerce Pact
    Russian Billionaire Plans to Invest in India’s E-Commerce Market: Reports
    Walmart to Buy Controlling Stake in Indian E-Commerce Giant Flipkart for $16 Bln
    Tags:
    trade conflict, retailer, rules, ecommerce, Indian Ministry of Commerce and Industry, India
    Community standardsDiscussion