Ama­zon and Flip­kart face In­dian headache

The Irish Times - Business - - MARKETS -

In­dia has an­nounced strict new rules for for­eign-owned ecom­merce com­pa­nies that could cause fresh headaches for Ama­zon and Wal­mart even af­ter they have in­vested bil­lions to de­velop their local busi­nesses.

The rules, which are due to take ef­fect on Fe­bru­ary 1st, will pro­hibit for­eign com­pa­nies that are run­ning ecom­merce mar­ket­places – such as Wal­mart-owned Flip­kart and Ama­zon’s In­dian site – from sell­ing goods sold by busi­nesses in which they hold eq­uity stakes.

The reg­u­la­tions also state that ecom­merce plat­forms may not “di­rectly or in­di­rectly in­flu­ence the sale price of goods and ser­vices” – a con­di­tion that could put an end to the block­buster sea­sonal sales pro­mo­tions.

The rules are in­tended to ap­pease In­dia’s mul­ti­tude of small busi­nesses. – Copy­right The Fi­nan­cial Times Lim­ited 2018

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