BUSINESS

New norms: big e-com firms may seek time

Large e-commerce marketplaces could approach the government seeking extension of the February 1 deadline as compliance with the recent changes would require at least 4-5 months at operational level, according to multiple sources.

A senior executive at one of the big e-commerce companies said at least 4-5 months would be needed for players to rework the operational aspects and that the February 1 deadline does not provide adequate time.

Reworking ties

The rules were announced on December 26, giving firms just a month to execute these changes which, in many cases, would require reworking existing partnerships and even, overhauling business models, the executive added.

Another official said companies are studying the recently announced amendments in detail and are likely to approach the government in the coming weeks. These representatives did not wish to be identified as the matter is sensitive. Emails sent to Amazon and Flipkart did not elicit any response.

The government’s move to tighten norms has hit Amazon and Flipkart the hardest as the new regulations prohibit online marketplaces with foreign investment to sell products of companies in which they hold stake. Norms also ban exclusive marketing arrangements.

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