India tightens e-commerce rules, likely to hit Amazon, Flipkart

  • Platforms will not be able to sell products from affiliated companies
  • New rules will appease small traders and farmers who fear that US firms are making a back door entry into India’s retail market

Indian vendors sell Santa Claus masks and caps on a street in Hyderabad, India. Photo: AP

India will ban e-commerce companies such as Amazon.com and Walmart -owned Flipkart Group from selling products from companies in which they have an equity interest.

In a statement, the government also said that the companies will be prevented from entering into exclusive agreements with sellers. The new rules will be applicable from February 1.

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