The Indian Government will introduce a new e-commerce policy that requires companies like Amazon and Flipkart to treat sellers equally and ensures transparency, according to Reuters. The government has been working on the policy for months after brick-and-mortar retailers accused major e-commerce firms of avoiding federal rules. Amazon and Flipkart have denied all allegations.
- The policy states companies must ensure "equal treatment of all sellers/vendors registered on their platforms and not adopt algorithms which result in prioritizing select vendors/sellers.”
- It's unknown when the policy will be implemented. It will also apply to domestic platforms such as Reliance Industries' JioMart.
- Amazon and Flipkart will have to be transparent about online discounts after smaller retailers complained they couldn't compete with the major platforms.
- Last month, a Reuters report revealed Amazon favored large sellers on its Indian platform and used them to circumvent rules intended to protect smaller sellers.
- In January, it was reported that India would adjust its foreign investment rules for e-commerce firms, which would force companies like Amazon to restructure their relationship with major sellers.