India is shoring up its e-commerce regulations, announcing expanded rules Wednesday that are likely to hit Amazon in one of its most important global markets.
The new rules prohibit e-commerce companies from selling items from other companies that they have an equity interest in. The regulations bar companies like Amazon from exercising control over vendors on its platform. “Control,” in this case, means the e-commerce company purchases more than 25 percent of a vendor’s goods.
India’s commerce department is also banning e-commerce platforms from making exclusive deals with sellers in their marketplaces. The new regulations are to go into effect on Feb. 1.
“E-commerce entities providing marketplace will not directly or indirectly influence the sale price of goods or services and shall maintain level playing field,” India’s commerce department said in a statement.
The regulatory changes are in response to advocacy by trade groups in India. Local vendors are concerned that foreign retailers are creating unfair market dynamics and making it difficult to compete, according to Reuters.
Amazon did not immediately respond to GeekWire’s request to comment on the new rules.
