The Indian government sent a strong screw you to Amazon and the Walmart-owned Flipkart on Wednesday, banning e-commerce companies from selling products from companies that they have an equity interest in or “entering into exclusive agreements with sellers,” CNBC reported.
The Indian government sent a strong screw you to Amazon and the Walmart-owned Flipkart on Wednesday, banning e-commerce companies from selling products from companies that they have an equity interest in or “entering into exclusive agreements with sellers,” CNBC reported.
India already bans e-commerce sites from selling products directly, per the New York Times, which has led to them acquiring stakes in affiliate companies that serve much the same purpose at arm’s length. At issue is the power of e-commerce companies to make bulk purchases of goods that they then sell to “select sellers, such as their affiliates or other companies with which they have agreements,” CNBC wrote. The strategy allows giants like Amazon to offer products at low prices that smaller competitors often find hard to match.
