Government reviews guidelines for FDI in E-commerce

Government has reviewed guidelines for Foreign Direct Investment in E- commerce companies to protect the interests of domestic players. It has taken host of steps and barred e-commerce companies from selling products of the companies in which they have stake. In a statement, the Commerce and Industry Ministry said, it has also prohibited e-commerce companies from entering into an agreement for exclusive sale of products. 

Cash back provided to buyers by group companies of marketplace entity shall be fair and non-discriminatory. The Ministry said,



E-commerce entities providing marketplace will not directly or indirectly influence the sale price of goods or services and shall maintain level playing field. These decision will come into effect from 1st of February, 2019. 

The decision comes in the backdrop of several complaints being flagged by domestic traders on heavy discounts being given by e-commerce players to consumers. Traders have welcomed the government's move to tighten norms for sale of products by e-commerce firms.