Flipkart, Amazon & Tata Group raise concerns over ‘related-party clause’ in new e-commerce rules

The country’s largest e-commerce companies, including Flipkart, Amazon India and Tata Group, have told the government that they are concerned about the ‘related-party clause” in the draft regulations for the industry that can prevent them from selling on their online platforms.

Top executives and industry groupings such as FICCI, CII, IAMAI and Assocham also flagged their disquiet over the proposal to not allow an e-commerce platform from using its name in its private brand at the meeting organized by the department of consumer affairs and Invest India, sources said.

There was a broad consensus that the data-related proposals should be included only in the upcoming Personal Data Protection Bill and not be made part of the proposed e-commerce regulations, they added.

Citing the “exhaustive and confusing“ nature of the draft e-commerce rules, the industry is seeking time until the end of July to submit their views.

The industry associations are expected to make a formal request to the government seeking more time and further discussion.