India examines creating regulator to settle e-commerce disputes

New Delhi, India - India is examining the feasibility of setting up a regulatory authority to settle disputes related to e-commerce, a top government official said, amid a raging battle between big online retailers and mom-andpop stores.

The proposal being considered comes after small traders approached the government with allegations of predatory pricing and deep discounting by Amazon.com Inc and Walmart Inc. They allege that the US giants are pricing them out of the market.

“We are examining the need for a regulator to look into ecommerce issues once the policy is implemented,” Guruprasad Mohapatra, secretary of the Department for Promotion of Industry and Internal Trade, told Bloomberg News in an interview in New Delhi. “We plan to implement the policy within this financial year.”

Prime Minister Narendra Modi’s administration is under pressure from small traders, a traditional support base for the ruling Bharatiya Janata Party (BJP), to act against the big online retailers. In their defence, online retailers say e-commerce has the potential to create millions of jobs in India and give opportunities to smaller nesses.

The policy will also address with use of data generated by the retailers and its storage on servers in India, Mohapatra said.

The new policy is in the works for over a year now and has become a contentious issue in trade-talks between the US and India. In the past too, online retailers have been on the receiving end when the South Asian nation implemented new rules that prohibited exclusive product offerings and deep discounts on them. busi