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 said
By Aditya Kalra
NEW DELHI (Reuters) -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
https://www.reuters.com/world/india/frequent-run-ins-with-india-govt-cloud-us-tech-expansion-plans-2021-06-11
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.
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