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Online retailers must refrain from adopting algorithms that result in prioritizing a select few vendors on their platforms, according to a draft e-commerce policy prepared by the department for promotion of industry and internal trade (DPIIT). To promote fair competition, e-commerce operators will have to ensure equal treatment of all sellers and vendors on their platform. Besides, they will have to put out transparent policies on discounts, while spelling out the basis of discount rates funded by platforms for different products and suppliers. In the interest of the Indian consumer, and the local startup ecosystem, the government will aim to ensure that there are more service providers available, and that network effects do not lead to creation of digital monopolies misusing their dominant market position, the draft policy said. Business Standard has seen a copy of the draft.

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