FILE PHOTO: A small toy shopping cart is seen in front of Amazon and Flipkart logos in this picture illustration taken, July 30, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
It's not clear how the objections from the finance ministry - a dozen in total - will ultimately be reflected in the proposed rule changes, first floated in June https://www.reuters.com/world/india/india-plans-tighter-e-commerce-rules-amid-complaints-over-amazon-flipkart-2021-06-21. But watchers of the influential government arm say its complaints won't fall on deaf ears in the upper echelons of Prime Minister Narendra Modi's administration.
Though the rules were announced after complaints from brick-and-mortar retailers about alleged unfair practices of foreign companies, they also drew protest from Tata Group, with more than $100 billion in revenue https://reut.rs/3hQinGB, which is planning an e-commerce expansion. "The proposed amendments are likely to have significant implications/restrictions on a sunrise sector and 'ease of doing business'," said the three-page memo."Care needs to be taken to ensure that the proposed measures remain 'light-touch regulations'.
The consumer affairs ministry has said the new rules were aimed to"further strengthen the regulatory framework" and were issued after complaints of"widespread cheating and unfair trade practices being observed in the e-commerce ecosystem." "It is undesirable to introduce a mini-competition law regime in the consumer" rules, said the memo. The corporate affairs ministry did not respond to Reuters requests for comment.