Modi govt’s new e-commerce rules have Amazon, Flipkart, JioMart on their toes
New Indian e-commerce rules will raise costs for all online retailers but particularly Amazon and Walmart’s Flipkart as they may have to review their business structures, senior industry sources told Reuters.
India’s Ministry of Consumer Affairs outlined plans on Monday which include limiting “flash sales” by online retailers, reining in a private label push, compelling them to appoint compliance officers and impose a “fall-back liability” if a seller is negligent.
The new rules are expected to have an impact across the board in an e-retail market India forecasts will be worth $200 billion by 2026, with players including from Tata’s BigBasket, Reliance Industries’ JioMart and Softbank-backed Snapdeal to market leaders Amazon and Flipkart.
The rules are the latest in a growing confrontation between U.S. tech giants and New Delhi over a host of policy-related issues which are seen by some as protectionist.
“The rules will have a wider impact on all forms of e-commerce and will increase business costs. Entities, even beyond big players, are analysing the policy and will share concerns with the government,” Arjun Sinha, a partner at Indian law firm AP & Partners, told Reuters.
The companies have until July 6 to respond to the proposals, after which time they may be reviewed further or implemented.
Snapdeal said it was reviewing the rules. BigBasket declined to comment. Reliance did not respond to a request for comment.
One aspect of the proposed new rules which is likely to have a particular impact is one which gives the customer “suggestions of alternatives to ensure a fair opportunity for domestic goods” if a retailer is showing imported goods for sale…Read more>>