As the Indian government had introduced a revised set of new e-commerce rules to pull the edges of an almost monopolized e-commerce industry, the Amazon India’s website had displayed signs of widespread disruptions on Friday, February the 1st, 2019.
Besides, the newly revised e-commerce rules in India had forced the US-based, Walmart owned e-commerce giant, Flipkart & Amazon to take down its critical grocery services and to get rid of wide-ranging products, such as floor cleaners and sunglasses.
In fact, the products had started to disappear from Amazon India’s website later on Thursday (Jan. 31st), as it hurried on to comply with the regulations before a midnight deadline, at least two sources with direct knowledge of the subject matter revealed on Friday (February 1st).
Earlier on December, India refurbished its foreign direct investment rules, as an attempt to prevail its e-commerce industry’s foreseeable monopolization, while its neighboring China’s Alibaba controls 58.2 percent of the country’s e-commerce industry as of November.
Nonetheless, the newly imposed rules would impair any company to sell products through an e-commerce platform, in which they hold stakes. Apart from that, the revised rules had also barred the companies from making deals with sellers to sell exclusively on the platforms.
Addressing to the current situation, the Amazon Chief Financial Officer, Brian Olsavsky said, “The situation in India is a bit fluid right now, but the country remains a good long-term opportunity,” as cited in a Reuters report.