India’s new e-commerce rules to hit Amazon, Walmart’s growth plans: Report

India’s draft e-commerce rules may raise costs and impede the expansion plans of companies like Amazon.com Inc and Walmart inc, opines Economic Times. These rules aim to prevent “digital monopolies” by prescribing a code of conduct for online retailers and defining cross-border flow of user data.

The new rules aim to reduce prevalent market distortions. The draft proposals seek to ensure algorithms created by e-retailers do not discriminate against sellers. They also call for associates of companies including Amazon and Walmart be governed by the same e-commerce regulations.

The draft e-commerce policy has been under discussion within various ministries and departments of the government for more than a year. The government wants to ensure that data emanating from India is for local entities first. Among the safeguards being considered are regulating cross-border flow of data of Indian users and audits.