India is working to strengthen its e-commerce laws, announcing broad rules on Wednesday likely to hit the Amazon in one of its most important global markets.
The new rules prohibit e-commerce companies from selling materials from other companies that have an interest in shares. The regulations prohibit companies such as Amazon from controlling vendors on their platform. Control means, in this case, that the e-commerce company buys more than 25 per cent of the supplier's goods.
The Indian Ministry of Commerce also prohibits e-commerce platforms from entering into exclusive deals with vendors in their markets. The new regulations will enter into force on February 1.
"E-commerce entities that provide the market will not directly or indirectly affect the price of selling goods or services and will maintain an equal level," the Indian Trade Administration said in a statement.
Organizational changes are a response to the advocacy of business groups in India. Local sellers are concerned that foreign retailers are creating unfair market dynamics and making them difficult to compete, Reuters said.
Amazon did not immediately respond to GeekWire's request to comment on the new rules.