Piyush Goyal says govt considering certain clarifications on FDI in e-commerce sector
He said the current FDI policy for the e-commerce sector is robust and well-designed
New Delhi: Amid domestic traders complaining alleged violations of FDI norms by foreign online players, commerce and industry minister Piyush Goyal on Tuesday said the government is considering to come out with certain clarifications to ensure that the e-commerce sector works in the “true spirit” of the law and rules.
He said the current FDI policy for the e-commerce sector is robust and well-designed. However, there are certain complaints from consumers and small retailers about certain practices of the e-commerce companies, which are under investigation, he added.
“We have sought several information, they are being looked into. We are also considering certain clarifications to ensure that the e-commerce sector works in the true spirit of the law, of the rules that have been laid down for e-commerce,” Goyal told reporters.
He added that the e-commerce companies are supposed to provide an agnostic platform so that buyers and sellers can trade with each other.
The online platform should not become part of the trading transaction, “should neither be funding it, should neither be having algorithms which give preference to one or the other, should neither be promoting their own products.” But, it should provide all data that is required for a rational choice, and the choice should be a free choice of the consumer, Goyal added.
The buyers and sellers should be given an opportunity to trade with each other as the platform only is a service provider, he said.
“Those who break that law will certainly have to respond to our concerns and correct their business practices at the earliest,” the minister added.
Recently, the ministry has forwarded representations by the Confederation of All India Traders (CAIT) of alleged violations by Amazon and Flipkart to the Enforcement Directorate and the Reserve Bank of India for “necessary action”.
CAIT has time and again alleged that the e-commerce players violated the Foreign Exchange Management Act and FDI rules.
Download Money9 App for the latest updates on Personal Finance.
