Exclusive: India plans foreign investment rule changes that could hit Amazon

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India is considering revising its foreign investment rules for e-commerce, three sources and a government spokesman told Reuters, a move that could compel players, including Amazon.com Inc, to restructure their ties with some major sellers.

FILE PHOTO: People move past a hoarding of Amazon India outside a metro rail station in New Delhi, India, October 23, 2019. REUTERS/Anushree Fadnavis

Amazon and Walmart’s Flipkart were last hit in Dec. 2018 by investment rule changes that barred foreign e-commerce players from offering products from sellers in which they have an equity stake. “It’s a work in progress,” Baweja said, adding an internal meeting on the subject last took place about a month ago.

Domestic traders have been unhappy about the growth. They see foreign e-commerce businesses as a threat to their livelihoods and accuse them of unfair business practices that use steep discounts to target rapid growth. The companies deny they are acting unfairly. Among other changes, the government is considering changes that would effectively prohibit online sales by a seller who purchases goods from the e-commerce entity or its group firm, and then sells them on the entity’s websites, two of the sources said.

 

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Ambani doesn't likes competition. It will only be reliance that be allowed to remain in ecommorce space. Others stand no chance as he has both ruling party and opposition politicians in his pockets.

good luck

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