Fitch: Policy changes will increase pressure on foreign e-commerce companies
Fitch: Policy changes will increase pressure on foreign e-commerce companies
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Due to policy and other changes happening in India regarding online business, big foreign online companies of this sector are expected to be affected significantly. The same rating agency Fitch says that the Mukesh Ambani-controlled Reliance Retail's foray into the e-commerce business may also face a lot of pressure for international e-commerce companies operating in India. Fitch Solutions has said that the e-commerce policy is underway and is expected to go into effect from March.

Further, under the draft guidelines issued earlier, foreign online sellers have been barred from selling products of companies or affiliates in which they hold equity. Apart from this, the government is also working on the possibility of setting up a regulatory authority to resolve disputes between large online retailers and small entrepreneurs. "We believe that despite repeated investments, Amazon and Flipkart are like International e-commerce companies have been under increasing pressure due to policy changes and Reliance Retail's e-commerce platform 'JioMart' stepping into the digital market. ' The rating agency said, "Under the new policy, international e-commerce companies may be prohibited from setting market-breaking prices in India and offering heavy discounts."

In addition, e-commerce companies will have to store store-related data in India-based servers. This will put additional burden on them. It is being told that on the basis of a study recently, the Competition Commission of India (CCI) has put foreign online companies in the dock on the issue of discount and pricing. The Commission believes that e-commerce companies give so much discount, especially in the case of mobile phones, that it becomes difficult for domestic retailers to stand in front of them. According to the CCI, this is happening with many other categories of products, which it will investigate.

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