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India s new draft e-commerce policy to rein in related parties

India’s new draft e-commerce policy to rein in related parties SECTIONS Share Synopsis The move is aimed at curbing circumvention of India’s e-commerce FDI policy and anti-competitive activities by large e-commerce marketplaces like Amazon and Flipkart. How India’s upcoming draft e-commerce policy could impact Flipkart and Amazon? Bengaluru: The government is looking at extending restrictions placed on large ecommerce marketplaces such as Amazon and Walmart-owned Flipkart to their associates and related parties, to curb alleged circumvention of foreign direct investment (FDI) norms and anti-competitive activities by these players. A leaked copy of the upcoming draft e-commerce policy, which The Economic Times has reviewed, said the government will, from time to time, notify which parties fall under the definition of associates and related parties. Industry leaders said this will give rise to uncertainty.

Draft e-comm policy calls for equal treatment of sellers by marketplaces

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.

Inter-Ministerial meeting on draft e-commerce policy on Saturday

Inter-Ministerial meeting on draft e-commerce policy on Saturday
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