In a significant development, the Indian government announced new regulations for foreign investment in e-commerce sector. The move aims to tighten rules for giants like Amazon and Walmart-owned Flipkart. The new guidelines prohibit e-commerce companies from selling products of companies in which they have an equity stake. Additionally, exclusive marketing arrangements between e-commerce entities and sellers are also banned. These changes are set to come into effect from February 1, 2019. The government’s decision is seen as an attempt to address the concerns raised by small traders who have accused e-commerce platforms of unfair business practices. The new rules could potentially disrupt the business models of major e-commerce players in India. Companies like Amazon and Flipkart may have to restructure their operations to comply with the regulations. This development is likely to have a significant impact on the e-commerce landscape in India. It remains to be seen how the major players in the sector will adapt to the new rules and continue to operate in the country. The Indian e-commerce market has been growing rapidly in recent years, attracting investments from major global players. The new regulations are expected to bring more transparency and accountability to the sector, benefiting both consumers and small traders.

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