India Foreign Investment Rule Change Could Hit E-Commerce Players
India is considering revising its foreign investment rules for e-commerce, a move that could compel players, including Amazon.com Inc, to restructure their ties with some major sellers. The government discussions coincide with a growing number of complaints from India’s brick-and-mortar retailers, which have for years accused Amazon and Walmart Inc-controlled Flipkart of creating complex structures to bypass federal rules, allegations the U.S. companies deny. 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. Now, the government is considering adjusting some provisions to prevent those arrangements, even if the e-commerce firm holds an indirect stake in a seller through its parent said. The changes could hurt Amazon as it holds indirect equity stakes in two of its biggest online sellers in India.
Tags : ALLIED India Foreign Investment Rule E-Commerce Players Amazon.com Inc