Draft e-commerce policy mandates equal treatment to all sellers

India’s draft e-commerce policy mandates its e-commerce firms to treat sellers equally on their platforms and ensure transparency, says a report by the Economic Times.

A Reuters special report last month revealed that for years, Amazon has been favoring a small group of sellers on its India platform and using them to circumvent the country's foreign investment rules.

The new policy will apply to Amazon and Flipkart as well as domestic players like Reliance Industries, which has plans to expand its JioMart online platform. Separately, India also plans to change its foreign investment rules that could prompt players including Amazon to restructure their ties with some major sellers.

Indian traders have also complained about steep discounts offered by online companies which smaller retailers have not been able to match.

The Reuters special report last month - based on internal Amazon documents dated between 2012 and 2019 - showed the company helped a small number of sellers prosper on its India platform, giving them discounted fees and helping one cut special deals with big tech manufacturers.