South Asian Insider
Amazon changes business structure in India after new e-commerce rules: Report
(Agencies)- One of the biggest sellers on Amazon.com Inc's India website has returned after the online retail giant changed its business structures to comply with new federal e-commerce curbs that took effect last week, two sources told Reuters.
India's modified foreign direct investment rules that kicked in on February 1, prevent companies such as Amazon from selling products from vendors where they, or their group companies, have equity holdings.
Amazon was forced to remove hundreds of thousands of items sold by top vendors Cloudtail and Appario as it indirectly held 49 percent equity stakes in both firms.
But on Thursday Cloudtail had returned with more than 300,000 products listed on Amazon, after the US e-commerce firm cut its indirect holding to 24 percent, one of the sources with knowledge of the matter told Reuters. The stake was bought by the majority holders, Catamaran Ventures, the source said.
"We have no equity participation in any seller company on our marketplace," Amazon said in a statement, without sharing details of the changes in its indirect holding of Cloudtail.
Catamaran, an investment firm launched by Infosys founder NR Narayana Murthy, said it had made "required changes" to comply with the rules, but did not elaborate.
Amazon is working on a similar restructuring for the other big seller, Appario, a second source said. The sources declined to be named as they were not authorized to discuss the same with media.
The new rules were introduced after complaints from small Indian traders who said Amazon and Walmart-owned online retailer Flipkart used their control over inventory from affiliated vendors to unfairly offer discounts.
The Confederation of All India Traders (CAIT), which has pushed for tougher scrutiny of e-commerce players, on Thursday alleged Amazon's latest move was a circumvention of the new rules.
The group would ask India's industries department to clarify that online retailers should not hold direct or indirect stakes in their vendors, CAIT Secretary General Praveen Khandelwal told Reuters.
The industries department did not immediately respond to a request for comment.
Amazon and Walmart Inc had unsuccessfully lobbied against the latest rules and pushed for a delay in their implementation.
While product listings on Amazon have been disrupted, Flipkart has been less impacted as it had no equity holdings in its vendors.
Flipkart's sellers were exhausting inventory from before the rules kicked in, and the company was working with its partners to ensure they complied with new norms when they sold new inventory on the platform, a person with direct knowledge of the matter said. Flipkart declined to comment.
300,000 Pounds Suspect Cash Seized From Indian-Origin Couple's UK Home
(SAI Bureau)Crime prevention officials and police in the UK have recovered over 300,000 pounds in cash suspected of being the proceeds of crime from a...
India's Covid problem could be bigger than we think
As India's virus cases rise, so do questions over death toll India is approaching the ninth month of the coronavirus pandemic with more than five ...
Why can companies still silence us with mandatory arbitration?
By Moira Donegan When it was revealed in October that Andy Rubin received a $90m exit package after being forced to resign over a credible sexual har...
Scindia camp wins big in MP Cabinet expansion, Shivraj inducts ministers with eye on bypolls: 10 points
The Jyotiraditya Scindia camp of former Congress MLAs won big at the Madhya Pradesh cabinet expansion. 11 ministers from his camp were inducted in the...
NIA makes 6th arrest in 2019 Pulwama attack, key JeM aide held
Mohd Iqbal Rather had facilitated the movement of Jaish-e-Mohammed (JeM) terrorist Muhammed Umar Farooq, a key conspirator in the Pulwama attack case....
China To Take Countermeasures If UK Extends Hong Kong Citizenship Plan
Britain's offer came in response to a sweeping new security law that China unveiled for the former British territory this week. London, United King...
The real face of Pakistan-sponsored terrorism in Jammu and Kashmir
(By Press section, Consulate General of India in New York) The real face of Pakistan-sponsored terrorism in Jammu and Kashmir was recently revealed as...
Indo American Press Club Holds Virtual Induction Ceremony
Dr. Joseph Chalil Inducted As Chairman, Dr. S.S. Lal As President of IPAC (Press Release By AJAY GHOSH) New York : During a solemn virtual ceremony...
Across the world, dictatorial regimes use Covid-19 to quash press freedom
Perhaps we shouldn't be surprised by attacks on press freedoms and journalists around the world amid the Covid-19 pandemic. We've seen this pattern be...
Maharashtra Government Moves Supreme Court Alleging Browbeating by Television Anchor
Arnab Goswami had moved the apex court seeking quashing of the Complaints and FIRs filed against him by Congress leaders in different states across In...
© All rights Reserved. The south Asian, Published Weekly from New york.