so what now? amazon cannot sell amazonbasics? google cannot stop amazon from selling chromecast?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.
The first restriction explicitly disallows e-commerce marketplace companies from selling private labels, that is brands they directly or indirectly own, on their platforms.
Meena added that Amazon and Flipkart may have to sell their stakes in entities that directly or indirectly own their private label products.
The second new restriction is on “exclusive deals” that many e-commerce marketplace platforms often run, say for a new brand launch.
The press note also makes clear that any services provided by an e-commerce marketplace entity should be “at arm’s length and in a fair and non-discriminatory manner”. This applies not just to services such as logistics, warehousing etc…but also to cash-back schemes.