India tightens online retail rules
New rules taking effect in India will directly impact such online retailers as Amazon and Walmart’s Flipkart Group.
Starting on Feb. 1, 2019, India will ban e-commerce retailers from selling products from companies in which they have an equity interest, reported Reuters. In a statement, the government also said that the companies will be prevented from entering into exclusive agreements with sellers.
“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,” the commerce ministry stated, according to the report.
The new rules are in response to advocacy by trade groups in India. Local vendors are concerned that foreign retailers are creating unfair market dynamics and making it difficult to compete, Reuters reported.
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Starting on Feb. 1, 2019, India will ban e-commerce retailers from selling products from companies in which they have an equity interest, reported Reuters. In a statement, the government also said that the companies will be prevented from entering into exclusive agreements with sellers.
“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,” the commerce ministry stated, according to the report.
The new rules are in response to advocacy by trade groups in India. Local vendors are concerned that foreign retailers are creating unfair market dynamics and making it difficult to compete, Reuters reported.
To read more, click here.