After a new e-commerce regulation implemented by the Indian government to protect its domestic retail stores, the US-based leading e-commerce companies Amazon and Flipkart pull down an estimated 400,000 products in India.
The new regulation for e-commerce businesses which was first announced at the end of 2018 imposes a ban on exclusive sales, prevents retailers from selling products on platforms they count as investors and applies restrictions on discounts and cashback promotions.
Flipkart, owned by Walmart following a $16 billion investment pull as many as one-quarter of its products in order to comply with the rule.
Amazon estimated to have pulled as many as 400,000 products from sale in India.
Initially, Flipkart and Amazon have applied for three-month relaxation to the new rules but the Indian government declined it.
As per the report, India’s online e-commerce surpass $100 billion per year by 2022, up from $35 billion today but today’s move by the Indian government going to affect the future estimates.