Ecommerce, food delivery companies may be barred from cross-selling own services: Report
Similar regulations discussed two years ago were protested by e-retailers who had said that such rules would affect their operations and brands materially.
Tuesday March 28, 2023,
1 min Read
The Indian government may prohibit ecommerce and food delivery companies from selling products and services of related parties or associated enterprises to registered merchants on their platforms, The Economic Times reported, citing people briefed on the matter.
Simply put, this could mean that companies likeand Amazon India would not be allowed to offer ancillary products and services such as in-house logistics or payment products to merchants.
Food delivery firms likeand would also come under the purview of this proposed regulation, sources told The Economic Times.
Similar regulations were discussed in 2021, and were protested by e-retailers who had said that such rules would affect their operations and brands materially.
YourStory was not able to independently verify this development. Swiggy, Amazon, Flipkart did not respond to YourStory's request for comments.
The Consumer Affairs Ministry is leading deliberations on the proposed regulation. Inter-ministerial discussions with the Department for Promotion of Industry and Internal Trade, and the Ministry of Electronics and Information Technology have also taken place, ET reported.
The proposed regulation also seeks to ban the licensing of in-house brands to third-party sellers to sell online.
Edited by Akanksha Sarma