NEW DELHI: Commerce and industry minister Piyush Goyal‘s allegations of violation of rules by e-commerce companies, such as Amazon, have raised expectations of government finally moving ahead with a new set of regulations for e-commerce, along with a policy, as well as e-pharmacies.
A day after his comments at an event organised by Pehle India Foundation, the minister seemed to have softened his stance on Thursday.”We are very clear that we want to invite FDI (foreign direct investment), we want to invite technology, we want to have the best of the world, and we are not against online at all,” he said in Mumbai.
“What the country always desires is fair play, is honesty – for the customer, honesty to the supplier of goods and services and to ensure that other people also have a fair chance to compete against such online business,” Goyal said.
Goyal’s ministry and the food and consumers affairs ministry, which he headed before the general election, had worked together to formulate the e-commerce policy as well as rules to protect consumer interest.
While stakeholder discussions had also been completed several months ago, the two decisions have not been implemented, despite the minister flagging his concern over predatory policy and violation of FDI rules.
The proposed e-commerce rules are likely to restrict all marketplaces, including those owned by Indian companies, from selling private label products of companies where they have “significant interest” or holding inventory. Several Indian companies in the e-commerce space have also held detailed discussions with govt departments promising compliance, although the rules are meant to primarily check violation of marketplace guidelines by Amazon and Flipkart, which are controlled by overseas investors.
Besides, the e-marketplace operators will have to do away with prompts pushing for payment platforms promoted by them, a move again aimed at Amazon Pay. “The purpose was to create a level-playing field between brick and mortar retailers and e-commerce to the extent possible, but the decision has been delayed for months,” said an official.
Similarly, when it comes to e-pharmacies, the policy has been hanging fire with the Centre for several years. In the absence of any clarity these platforms have only grown in size.
A day after his comments at an event organised by Pehle India Foundation, the minister seemed to have softened his stance on Thursday.”We are very clear that we want to invite FDI (foreign direct investment), we want to invite technology, we want to have the best of the world, and we are not against online at all,” he said in Mumbai.
“What the country always desires is fair play, is honesty – for the customer, honesty to the supplier of goods and services and to ensure that other people also have a fair chance to compete against such online business,” Goyal said.
Goyal’s ministry and the food and consumers affairs ministry, which he headed before the general election, had worked together to formulate the e-commerce policy as well as rules to protect consumer interest.
While stakeholder discussions had also been completed several months ago, the two decisions have not been implemented, despite the minister flagging his concern over predatory policy and violation of FDI rules.
The proposed e-commerce rules are likely to restrict all marketplaces, including those owned by Indian companies, from selling private label products of companies where they have “significant interest” or holding inventory. Several Indian companies in the e-commerce space have also held detailed discussions with govt departments promising compliance, although the rules are meant to primarily check violation of marketplace guidelines by Amazon and Flipkart, which are controlled by overseas investors.
Besides, the e-marketplace operators will have to do away with prompts pushing for payment platforms promoted by them, a move again aimed at Amazon Pay. “The purpose was to create a level-playing field between brick and mortar retailers and e-commerce to the extent possible, but the decision has been delayed for months,” said an official.
Similarly, when it comes to e-pharmacies, the policy has been hanging fire with the Centre for several years. In the absence of any clarity these platforms have only grown in size.