Skip to content
Search

Latest Stories

Amazon, Walmart face hit from new India e-commerce rules

Traditional traders and local players rejoiced on Thursday (27) at new e-commerce rules imposed by the Indian government on global giants such as Amazon and Walmart which analysts said could force them to rethink their Indian operations.

Under the surprise restrictions, e-commerce companies are banned from selling products from firms in which they have a stake. They are also forbidden from entering into exclusive deals with sellers.


The rules, which come into force on February 1, will particularly hit Amazon, which has invested billions of dollars in its India operation, and Flipkart, which was taken over this year by another US giant, Walmart.

The government acted in response to complaints from brick and mortar retailers that e-commerce giants were unfairly selling products at discount prices.

Indian law already prevents foreign-owned companies from selling directly on their internet sites.

So the e-commerce companies have been buying in bulk and then selling the products to favoured vendors. These then resell the products at discount on the e-commerce sites who legally remain intermediaries.

Amazon and Walmart, which in May bought a 77 percent stake in Indian company Flipkart for $16 billion, will be worst hit by the new rules. Neither has made a public reaction.

Snapdeal, one of India's biggest Internet shopping sites, said the changes would enable a level playing field for all sellers.

"Marketplaces are meant for genuine, independent sellers, many of whom are MSMEs (Micro, small and medium enterprises)," Snapdeal founder Kunal Bahl said on Twitter.

The Confederation of All India Traders (CAIT) said the new policy would end discounting wars between e-retailers.

It would also check big companies from using "the policy of exclusivity, predatory pricing and deep discounting" to their advantage, CAIT secretary Praveen Khandelwal told AFP.

The new rules will start on February 1 when the nationalist government of Prime Minister Narendra Modi announces its interim budget ahead of a general election due by May.

Analysts said the rule would have a major impact on the business models built up over the the last five years by the US giants as they make inroads in India's growing market.

"Amazon, Walmart and other players with their India investments will have to rethink their business strategies," Satish Meena from Forrester Research told AFP.

"Consumers will face the brunt and prices will go up while available options will go down."

The Indian government has in the past two years sought to strengthen home-grown enterprises against foreign competition.

It has told credit card companies such as Visa, American Express and Mastercard that all information on Indians must be stored on India-based computers.

The government has also proposed limits on what internet giants can do with personal data.

It recently proposed that the WhatsApp messaging app break its trademark encryption which guarantees private communications between users. The Facebook-owned firm has fiercely resisted the calls.

More For You

Apple India Reroutes 97% of iPhones to US Amid Tariff Push

Apple iPhones are seen inside India's first Apple retail store in Mumbai, India, April 17, 2023.

REUTERS

Foxconn sends 97 per cent of India iPhone exports to US amid tariff push

NEARLY all iPhones exported by Foxconn from India between March and May were shipped to the United States, according to customs data reviewed by Reuters.

The data showed that 97 per cent of Foxconn’s iPhone exports during this period went to the US, significantly higher than the 2024 average of 50.3 per cent.

Keep ReadingShow less
Weaker labour market data sparks debate on rate cuts

The Bank of England is weighing inflation signals ahead of rate call

Weaker labour market data sparks debate on rate cuts

PAY growth in Britain slowed sharply and unemployment rose to its highest level in nearly four years in the three months to April, official figures showed on Tuesday (10), potentially reducing the Bank of England’s (BoE) caution over further interest rate cuts.

Wage growth excluding bonuses slowed to 5.2 per cent, the weakest pace since the three months to September, and fell more than expected from 5.5 per cent in January to March this year.

Keep ReadingShow less
London Tech Week: Indian firms show investment intent

Keir Starmer at London Tech Week in London on Monday (9)

London Tech Week: Indian firms show investment intent

MORE THAN 350 technology companies from India joined London Tech Week, which began on Monday – making it the largest-ever delegation from the country to attend the event.

London mayor Sadiq Khan’s office, City Hall, described the rise in Indian participation as a reflection of deepening ties between India and London’s tech sectors, following the recent signing of the India– UK Free Trade Agreement (FTA).

Keep ReadingShow less
London Tech Week

The discussion around inclusivity and parenthood is likely to remain in the spotlight.

Getty Images

London Tech Week: Woman entrepreneur says she was humiliated after being denied entry for bringing baby

A female entrepreneur has said she felt “absolutely humiliated” after being denied entry to London Tech Week because she was accompanied by her 18-month-old daughter.

Davina Schonle, founder and chief executive of AI start-up Humanvantage AI, had travelled from her home to attend the event at Olympia on Monday, 10 June. She said she had made a three-hour journey to London with her daughter, Isabella, only to be turned away on arrival because children were not allowed into the venue.

Keep ReadingShow less
Smartless Mobile launched by podcast trio

The move marks the first commercial spin-off from the Smartless podcast

Getty Images

Smartless podcast trio launches Smartless Mobile as low-cost phone service

The hosts of the popular Smartless podcast, actors Will Arnett, Jason Bateman and Sean Hayes, have launched a new mobile phone service in the United States. Called Smartless Mobile, the service offers a budget-friendly alternative to traditional phone plans and is aimed at users who spend most of their time connected to WiFi.

The move marks the first commercial spin-off from the Smartless podcast, which is known for its celebrity interviews and humorous tone. The new venture was announced in early June 2025 and has already begun accepting sign-ups across the US mainland and Puerto Rico.

Keep ReadingShow less