Amazon forced to pull products in India as new rules bite

Some VCs Opine Ecommerce Policy Favouring Large Corporates Report

India late previous year modified foreign direct investment (FDI) rules for its burgeoning e-commerce sector that has attracted Walmart Inc and Amazon.com Inc, creating new hurdles for both global retail giants.

Amazon and Walmart's Flipkart are now banned from cutting exclusive arrangements with sellers, offering deep discounts or holding any business interest in online merchants on their websites. According to a CRISIL report, almost 35-40 per cent of e-retail industry sales amounting to Rs 40,000 crore could be impacted due to the tightened policy. On Wednesday, the Department of Industrial Policy and Promotion (DIPP) was also renamed as the Department for Promotion of Industry and Internal Trade.

The new rules also stipulate that an e-commerce marketplace, as well as any companies the marketplace has equity stakes in, should provide services such as fulfillment, logistics and payments to all sellers on the platform in a fair manner.

The firms are reportedly said to have started working on their "Plan B" in case the deadline wasn't extended.

Amazon's shares slid as analysts pushed the company for answers on India, a market the e-commerce titan regards as the best frontier for global expansion.

Team India practices hard ahead of Wellington ODI against New Zealand
The Indian middle order crumbled in the absence of both Virat Kohli and legendary wicket-keeper for India , Dhoni. Mohammed Shami and Vijay Shankar replace Khaleel Ahmed and Kuldeep Yadav respectively for the final ODI.

Both companies have bet heavily on India being a big growth driver: Amazon has committed to investing $5.5 billion there, while Walmart a year ago spent $16 billion on Flipkart. However, it will continue to look to engage with the government to seek clarifications that help us decide its future course of action as well as minimize the impact on its customers and sellers.

The new rules, meant to close loopholes in the regulations, state that if any seller purchases more than 25 per cent of its inventory from the wholesale units or other group companies of an e-commerce firm that runs an online marketplace, then that vendor's inventory will be deemed to be controlled by the e-commerce company.

Mint reported on 29 December that the threat of job losses in the supply-chain network has emerged as a major concern following the announcement of new FDI guidelines that seek to tighten rules for e-commerce companies. The adoption of such business models might bring into light the loopholes.

The decision not to extend the deadline has been welcomed by traders' bodies and home grown platforms such as Snapdeal and ShopClues, which have been campaigning vigorously for this outcome. "The only affected parties have been large-format retail stores, if at all, while smaller retailers and stores have continued to thrive", said Anand Lunia, general partner at India Quotient, a venture capital firm. Smaller e-commerce firms like Snapdeal and ShopClues as well as offline retailers have also written to Commerce Ministry, urging the government to not give into pressure from United States companies and authorities.

It also aims to benefit smaller e-commerce players who can not compete with e-commerce players.

Related News:

  • Gatland hails Wales after comeback

    Gatland hails Wales after comeback

    Wales showed better intent in the second half and finally they got their first points on board following brilliance from Josh Adams .
    Taliban say they are not looking to rule Afghanistan alone

    Taliban say they are not looking to rule Afghanistan alone

    Khalilzad has also pressed Ghani's government, which is deeply divided, to cobble together a strong negotiating team. Wednesday's remarks by Shaheen Suhail are the most conciliatory comments to date from the Islamic militant group.
    Chinese engineer arrested in the USA  for stealing Apple’s tech

    Chinese engineer arrested in the USA for stealing Apple’s tech

    Chen worked in the driverless cars section of the company, which recently fired some 200 employees in a restructuring. It's worth noting the U.S. and China aren't really getting along when it comes to trade and intellectual property.
  • LaLiga: Messi makes history in Barcelona’s 2-2 draw with Valencia

    LaLiga: Messi makes history in Barcelona’s 2-2 draw with Valencia

    Anyway, the Catalan club move six points clear of Atletico Madrid who resume their league campaign on Sunday against Real Betis. Lionel Messi rescued a point for Barcelona by bagging a brace and he did it in typically stunning, stunning fashion.
    Facebook removes 783 fake pages, accounts tied to Iran

    Facebook removes 783 fake pages, accounts tied to Iran

    Following the takedown of hundreds of pages and groups linked to Iran on Thursday , Facebook has continued its cull in Indonesia. According to the social media giant, some of the accounts date as far back as 2010.
    India crash out of Davis Cup tennis

    India crash out of Davis Cup tennis

    For Italy, top-ranked singles player Marco Cecchinato will take the court with Simone Bolelli, the 2015 Australian Open victor . Berrettini then made it 5-3 racing through his service games before breaking Prajnesh again in the ninth game.
  • Bow Wow Sent To Jail After Fight With A Woman In Atlanta

    Bow Wow Sent To Jail After Fight With A Woman In Atlanta

    Rapper Bow Wow and a woman were arrested early Saturday for allegedly beating each other in Atlanta, the site of the Super Bowl . Both Bow Wow and Holden were detained at Fulton County Jail, and the police report says the investigation is still ongoing.
    Man Charged After Brisbane Airport Scare

    Man Charged After Brisbane Airport Scare

    Police said the man at the centre of the emergency situation at Brisbane Airport is believed to live on the Gold Coast. The man was threatening people with a knife and claiming to have explosives, eyewitnesses told the Courier Mail .
    Police raid Melbourne Cup-winning trainer's stables

    Police raid Melbourne Cup-winning trainer's stables

    Giles Thompson, chief executive of Racing Victoria, said the investigation of Weir's stable is "not good for the image of racing". He has hundreds of horses in his stables, and is one of the largest employers in the sport in Australia, local media reported.
  • Tottenham 1 Newcastle United 0: Dubravka's late howler sends Spurs second

    Tottenham 1 Newcastle United 0: Dubravka's late howler sends Spurs second

    I'm not complaining but 24 hour is a massive disadvantage at a decisive point in the Champions League". He can not agree with the club or the club with him to find a place for him to play and be happy.
    Leicester close to loan signing of Monaco’s Youri Tielemans

    Leicester close to loan signing of Monaco’s Youri Tielemans

    Tielemans surprisingly joined Monaco for £ 20m last season but now the club are happy to let him go and recuperate that transfer fee in the summer.
    Tunnel found leading toward bank in Pembroke Pines

    Tunnel found leading toward bank in Pembroke Pines

    Flamingo Road in Pembroke Pines, Florida . "I don't think they were doing that for any other reason", Leverock said. Although it didn't reach the bank, the FBI is investigating the tunnel as an attempted bank burglary.


Most liked

Barca primed for gruelling 'Clasico' Cup tie
Four days after that, Madrid travels to the Netherlands to face Ajax in the last 16 of the Champions League . Barcelona routed Madrid 5-1 at the Camp Nou in October in the teams' first league game this season.

Osinbajo's helicopter crash-lands in Kogi
The PDP thanks God for the safety of Vice President Osinbajo, members of his entourage and the crew . TUKO.co.ke understands this was the second time the VP narrowly survived a helicopter crash .

Risk or reward: Knicks eye free agency after Porzingis trade
Thomas was traded by the Celtics to Cleveland in 2017 as part of the deal that brought Irving to Boston. That was the plan before and that's still the plan now. "So that's just where it stands".

Punxsutawney Phil Predicts "A Beautiful Spring"
Hollywood loves few things more than belated sequels and reboots, but they haven't gotten around to making another Groundhog Day . In reality, Phil's prediction is decided ahead of time by the group on Gobbler's Knob, a tiny hill just outside Punxsutawney.

Brazil dam collapse death toll rises to 121
In 2015, mining dams burst in nearby Mariana in what is considered Brazil's worst environmental disaster. Vale SA is the world's largest producer of iron ore, the raw ingredient for making steel.

Ralph Northam refuses to resign, claiming he's not in racist photo
Ralph Northam that surfaced Friday has folks in the Commonwealth State, and those around the country, wondering if he'll resign. Republican state Senator Bryce Reeves said in a statement that Northam should resign if the reports of the photos are accurate.

Crowds brave snow flurries to see UK royals Meghan and Harry
In another video , shared by Kensington, Meghan declares herself in charge of "banana messaging". The couple got in some parenting practice as they met children from Abbeywood pre-school.

Anunoby to play on All-Star weekend
The All-Star Game coaching staffs are determined by the best record in each conference through games played on Sunday, Feb. 3. The usA team will feature Lonzo Ball , De'Aaron Fox, Kyle Kuzma , Donovan Mitchell and Jayson Tatum , to name a few.

Cesar Azpilicueta Reveals Chelsea Dressing Room Anger After Bournemouth Defeat
I thrive on pressure. "I said that maybe I wasn't able to motivate them". Sarri was also asked if he had received any assurance from the club.

Apple reportedly unblocks Google’s internal apps on iOS devices
That bit aside, though, this app does appear to violate Apple's policies in the same way that Facebook Research's VPN iOS app did. Facebook was found to be using Apple's program for internal app distribution to track teenage users with a research app .

Darren Weir awaits Racing Victoria action over shock treatment claims
As part of that ruling stewards ordered all Weir and McLean trained horses accepted for races before Tuesday be scratched. Trainer Jarrod McLean and licensed foreperson Tyson Kermond were quizzed at Racing Victoria's offices on Thursday.

Cherokee officials say Elizabeth Warren apologized to them over DNA test debacle
Warren, goaded by President Trump into taking a DNA test and releasing its results, is only 1/64th to 1/1024th Native American. She has since launched an exploratory committee for 2020 and is expected to formally announce her bid later this month.

Kamala Harris Calls For VA Gov
Under the photo, text states that Nrotham's alma mater is the Virginia Military Institute and that his interest is pediatrics. He had previously served in the USA army, attended Eastern Virginia Medical School, and worked as a pediatric neurologist.

'Fiji Water girl' suing company following Golden Globes hostess gig
Social media users dubbed her " Fiji Water Girl" and shared her image, often with amusing captions. A spokesperson for Fiji Water said: "This lawsuit is frivolous and entirely without merit".

After The Freeze: Temperatures Set To Swing 60 Degrees This Weekend
A water tower exploded in White Bear township on Wednesday after its pipes froze , and many buildings' pipes met similar fates. The frigid conditions canceled more flights, and the number of deaths blamed on the cold climbed to 13, including one in Ohio.