The Ministry of Consumer Affairs' rules, which were released in a government statement, come amid complaints by brick-and-mortar retailers that foreign e-commerce players bypass Indian laws by using complex business structures. The changes could impact business structures used by Flipkart and Amazon in the fast growing Indian e-commerce market, industry sources and lawyers said. Foreign e-commerce players must not make direct sales to consumers, and can only operate a marketplace for sellers. Amazon and Flipkart are also regulated under India's foreign investment rules for e-commerce, and it was not clear if the proposed consumer ministry rules will supersede them or not. Amazon and Flipkart are separately locked in a court battle with federal antitrust watchdog to stall an investigation into their business practices.

Source: The Star June 21, 2021 17:07 UTC