India e-commerce rules cast
cloud over Amazon, Walmart
and local rivals
New Indian e-commerce rules will raise costs for all online retailers but
particularly Amazon and Walmart's Flipkart as they may have to review their
business structures, senior industry sources said
By Aditya Kalra
NEW DELHI (Reuters) -New Indian e-commerce rules will raise costs for all online
retailers but particularly Amazon and Walmart's Flipkart as they may have to
review their business structures, senior industry sources told Reuters.
India's Ministry of Consumer Affairs outlined plans on Monday which include
limiting "flash sales" by online retailers, reining in a private label push, compelling
them to appoint compliance officers and impose a "fall-back liability" if a seller is
The new rules are expected to have an impact across the board in an e-retail
market India forecasts will be worth $200 billion by 2026, with players including
from Tata's BigBasket, Reliance Industries' JioMart and Softbank-backed Snapdeal
to market leaders Amazon and Flipkart.
The rules are the latest in a growing confrontation
tech-expansion-plans-2021-06-11 between U.S. tech giants and New Delhi over a
host of policy-related issues which are seen by some as protectionist.
"The rules will have a wider impact on all forms of e-commerce and will increase
business costs. Entities, even beyond big players, are analysing the policy and will
share concerns with the government," Arjun Sinha, a partner at Indian law firm AP
& Partners, told Reuters.
The companies have until July 6 to respond to the proposals, after which time
they may be reviewed further or implemented.