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.
Two stars fight, and the image is stunning
Stars that have companions aren't always friendly to them, as evidenced by a stellar confrontation witnessed by astronomers. They studied the binary ...
Sex workers finally get 'honourable' funerals in Bangladesh
(News Agencies)-Often treated as less than human in life, there has been little dignity in death for the sex workers of one of the world's biggest b...
In tears again, victim's mother pleads for death warrant for 4 convicts
Demanding fresh death warrant, Asha Devi said, "I am here from one and half years, I am here and waiting for them to avail their legal remedies. Howev...
Delhi Police arrests 10 students in Gargi college molestation case
A case was registered against the ten accused under sections 452, 354, 509, 34 of the IPC at Hauz Khas Police Station. (News Agencies)-The Delhi ...
In AAP's victory, a lesson in transformative politics
The extraordinary political process that Delhi has witnessed this past month represents at once the maturing of the electorate within this "ordinary c...
How the AAP won, with some help from the BJP
Despite a patchy track record, the AAP captured the narrative. The Delhi BJP?had nothing to offer voters Delhi's outsized influence on the nationa...
Jammu and Kashmir: Detention is not the answer
Booking the former chief ministers under PSA is counterproductive The decision to book former Jammu and Kashmir (J&K) chief ministers Omar Abdulla...
Politics is shifting to the centre-right. Delhi proves it
Endorsing the religious practices of the majority, a strong nationalist pitch and populist welfarism is the new normal. Delhi is a riddle wrapped ...
Arvind Kejriwal appointed Delhi CM, 6 ministers to take oath
The 6 ministers who will take oath along with Arvind Kejriwal on 16 Feb are Manish Sisodia, Satyender Jain, Gopal Rai, Kailash Gehlot, Imran Hussain a...
Trump administration goes to war with states over Immigration
The Justice Department sues California and New Jersey to overcome enforcement roadblocks. The Trump administration dramatically escalated its war ...
© All rights Reserved. The south Asian, Published Weekly from New york.