Government bans Amazon and Flipkart from selling online exclusives - Techstudents

Government bans Amazon and Flipkart from selling online exclusives

Government bans the Amazon and Flipkart 

Amazon-and-Flipkart
Amazon and Flipkart

Government bans the Amazon and Flipkart Online retailers are going to be prevented from creating exclusive deals with specific sellers.

According to the new set of rules obligatory by the govt., a vendor United Nations agency has some stake within the e-commerce company or any of its cluster of corporations can not be allowed to examine its product on an internet platform.

Government bans Amazon and Flipkart from selling online exclusives

Online retailers Amazon and Flipkart will soon face consequences as the Indian government has levied new regulations that bar them from hosting exclusive products.  


While such a move will benefit several local traders and other sellers, this marks an end of the road for cashback schemes and discounts offered by these online giants.

In a statement free to Reuters, the govt. same that on-line retailers are going to be prevented from creating exclusive deals with specific sellers. According to the new set of regulations imposed by the government, a seller who has some stake in the e-commerce company or any of its group of companies will not be allowed to see its products on an online platform.

The rule additionally applies if over a fourth of the overall sales of associate entity comes from one trafficker.

This means Amazon and Flipkart can presently have to be compelled to withdraw favouring their own or partner merchants like Cloudtail (Amazon) and RetailNet (Flipkart) thus on not violate rules that condemn preferential treatment for sellers.  


The new rules also make it clear that cashback offers that the users get should be redeemable on a purchase no matter who the seller is. This meant that the services provided to vendors on associate e-commerce portal ought to be truthful and non-discriminatory.

The new rules additionally place a ban on exclusive deals that on-line retailers host once promoting a selected whole. With the origination of this rule, Xiaomi will no longer be able to sell their smartphone with exclusivity on Flipkart and the same applies to OnePlus on Amazon.

The new rules from the govt. are going to be obligatory as early as Feb one, 2019, and will require an e-commerce marketplace entity to furnish documents with a report of a statutory auditor to the Reserve Bank of India.

This report can ensure that the e-retailer was compliant of the rules and may be submitted by September thirty of each year.

The latest move from the govt. comes once native traders and nickel-and-dime on-line sellers suffered losses to exclusive partner sellers United Nations agency offered steep discounts thanks to discriminatory treatment.  


The new set of rules can minimise malpractices and valuation policies that favour specific sellers and their exclusive retailers. Amazon India has additionally confirmed that it’ll be evaluating the most recent rules. However, Flipkart is however to create a politician word on the matter.

Conclusion :
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Government bans Amazon and Flipkart from selling online exclusives Government bans Amazon and Flipkart from selling online exclusives Reviewed by Techstudents on February 07, 2019 Rating: 5

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