Amazon and Flipkart face Indian headache
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