Big day for Flipkart, Amazon, Snapdeal! Govt mulls single regulator for e-commerce
The government is mulling a single regulator and legislation to address all e-commerce related issues in the country.
- Jul 30, 2018,
- Updated Jul 30, 2018 1:12 PM IST
The central government is mulling a single regulator and legislation to address all e-commerce related issues in the country. The move is significant as it will put an end to legal uncertainty in the fast-growing online retail sector, according to a draft policy document seen by Reuters.
The report said that some of the measures suggested in the Draft National Policy Framework include local data storage, mandating the use of homegrown card payment network RuPay for online transactions and enhancing the participation of micro, small and medium enterprises in online retail.
India will also take steps to develop capacity for storing data and incentivise its domestic storage, the document said, adding that the e-commerce industry could be given time to "adjust before localization becomes mandatory".
"The government would have access to data stored in India for national security and public policy objectives subject to rules related to privacy, consent etc," the draft policy said.
It added that India's antitrust regulator Competition Commission of India will consider changing thresholds so that mergers and acquisitions in the e-commerce sector that potentially distort competition are compulsorily examined.
The move comes weeks after RIL Chairman Mukesh Ambani announced his plans for a new commerce platform. The e-commerce is India is currently dominated by foreign players.
US-based retail giant Walmart is in the process of buying 77 per cent stake in domestic e-commerce giant Flipkart, in which a majority share is held by a Singapore-registered entity, Flipkart Singapore. Shares in this entity are, in turn, held by different investors - prominently, Softbank (almost 23 per cent), Tiger Global (20.5 per cent) and Naspers (13 per cent). Chinese firm Tencent holds around 6 per cent stake, while promoters Sachin Bansal and Binny Bansal together hold close to 11 per cent.
With Reuters Inputs
The central government is mulling a single regulator and legislation to address all e-commerce related issues in the country. The move is significant as it will put an end to legal uncertainty in the fast-growing online retail sector, according to a draft policy document seen by Reuters.
The report said that some of the measures suggested in the Draft National Policy Framework include local data storage, mandating the use of homegrown card payment network RuPay for online transactions and enhancing the participation of micro, small and medium enterprises in online retail.
India will also take steps to develop capacity for storing data and incentivise its domestic storage, the document said, adding that the e-commerce industry could be given time to "adjust before localization becomes mandatory".
"The government would have access to data stored in India for national security and public policy objectives subject to rules related to privacy, consent etc," the draft policy said.
It added that India's antitrust regulator Competition Commission of India will consider changing thresholds so that mergers and acquisitions in the e-commerce sector that potentially distort competition are compulsorily examined.
The move comes weeks after RIL Chairman Mukesh Ambani announced his plans for a new commerce platform. The e-commerce is India is currently dominated by foreign players.
US-based retail giant Walmart is in the process of buying 77 per cent stake in domestic e-commerce giant Flipkart, in which a majority share is held by a Singapore-registered entity, Flipkart Singapore. Shares in this entity are, in turn, held by different investors - prominently, Softbank (almost 23 per cent), Tiger Global (20.5 per cent) and Naspers (13 per cent). Chinese firm Tencent holds around 6 per cent stake, while promoters Sachin Bansal and Binny Bansal together hold close to 11 per cent.
With Reuters Inputs