Panel: Fast-track probe against e-comm cos flouting FDI rules – Times of India

NEW DELHI: Flagging the constraints of the FDI coverage in addressing anti-competitive practices within the e-marketplace corresponding to self-preferencing, lack of platform neutrality, deep discounting, unique agreements and preferential remedy to chose sellers, a parliamentary panel has advisable that the federal government ought to have a holistic framework to handle these points. It mentioned this could apply to all marketplaces being funded by international or home entities.
The standing committee on commerce has additionally advisable that the enforcement mechanisms below the FDI coverage are successfully strengthened and actions are taken in opposition to e-commerce giants which can be discovered flouting the FDI guidelines. “A timebound investigation mechanism is required to handle the fast-paced digital market and be sure that unfair market practices don’t happen because of sluggish investigation course of,” the panel mentioned. In keeping with the report on the “Overview of E-commerce Market” submitted to the Rajya Sabha Secretariat on Wednesday, the panel has noticed that blanket imposition of elevated obliga- tion on e-commerce corporations, regardless of their measurement as per the e-commerce guidelines notified by the patron affairs ministry, could also be counterproductive and should decelerate the expansion of e-commerce in India.
It has advisable {that a} calibrated method be adopted in the direction of regulating e-commerce entities and the extra duties and liabilities sought to be launched by way of the Draft Guidelines sho- uld be made relevant particularly to solely e-commerce entities that qualify a sure threshold, significantly to manage e-commerce giants. The patron affairs ministry is but to inform the contemporary amendments to e-commerce guidelines amid reservations from totally different ministries.
The committee, in its report, mentioned that the e-commerce corporations aren’t registered with the DPIIT (inside commerce division) regardless of it being the mother or father division to take care of the sector. It mentioned obligatory registration of ecommerce corporations with the division would be the first step in the direction of streamlining the regulation of the sector and also will help in gauging the progress of the sector. The panel has mentioned that frequent modifications to coverage are in opposition to the ethos of ease of doing enterprise because it brings uncertainty within the coverage regime whereas recommending a steady FDI coverage regime for the sector to spice up the boldness of potential buyers.

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