US retail giant fears 'much uncertainty', says main concern is trying to minimise impact to its customers and sellers
New e-commerce rules bar online retailers from selling products via vendors in which they have an equity interest, and also from making deals with sellers to sell exclusively on their platforms
'But we are committed to doing everything we can to be compliant with the new rules', said Flipkart
The e-commerce firms would not be able to have a select few sellers on the platform in which they have stakes in, directly or indirectly
On December 26, 2018, the government tightened norms for e-commerce firms and barred online retailers like Flipkart and Amazon from selling products of the companies in which they have stake
To continue operating, Amazon and Walmart will now have to turn their sites in India into digital bazaars for independent merchants, becoming more like eBay
The e-commerce policy would be effective from February 2019
SJM claimed that China-based sellers have been selling Chinese products illegally via e-commerce channel and it has identified that over 200,000 such orders are being fulfilled on a daily basis
These norms would hit Amazon and Walmart-backed Flipkart the hardest
New e-commerce norms are also a reflection of the BJP's growing concerns for both local traders and e-commerce firms
Latest move comes a week after DIPP had explicitly ordered otherwise
Tightening norms for e-commerce firms having foreign investment, the government barred online marketplaces from selling products of companies where they hold stakes
The biggest (high-impact) change is the clause that debars a seller that has ownership by the e-commerce marketplace, or any of its "group companies", from selling on the said e-store
With multiple ministries arguing against the policy and the PMO overseeing the deliberations, the plans to bring out the final draft by the end of October are unlikely to materialise
Confusion over e-commerce policy must end
Several complaints against e-tailers violating the FDI norms, may be investigated soon
An initial draft of the proposed national e-commerce policy was circulated among stakeholders last month to receive their comments
The government has also come under fire from retailer bodies for lax implementation of existing FDI norms
In 2017, almost $21 billion worth of PE investments made its way into e-commerce companies and start-ups
On the issue of a potential regulator for the sector, the Commerce Secretary said it would depend on whether the policy needed legislative requirements and new regulations or existing laws sufficed