The Information Technology Act, 2000, is the backbone of e-commerce regulations in India. It provides legal validity to electronic transactions, which in turn gives recognition to the services provided by e-commerce platforms. Additionally, the Competition Act, 2002...
Scroll to see major developments in this topic
June, 2022
The committee recommends that India’s regulatory framework be amended to include the identification of ‘gatekeeper platforms’ of a specific scale that should be subject to more stringent supervision. It also proposed tougher methods to identify anti-competitive mergers and acquisitions, advised that the FDI framework be made more comprehensive, emphasised on the regulation of data and significance of cybersecurity, and recommended the creation of a separate division within the CCI with the sole mandate of regulating e-commerce platforms.
March, 2021
July, 2020
The policy permits a non-resident entity to make investments in India with certain sectors/activities being off-limits. However, entities from countries sharing a land border with India or having the beneficial owner situated in or being a citizen of such a country must follow the Government route for investments. Moreover, individuals from Pakistan or entities incorporated there can only invest in India through the Government route, excluding defence, space, atomic energy, and other restricted sectors/activities. Further, ownership transfer of any FDI in an Indian entity that results in such beneficial ownership falling under abovementioned restrictions will also necessitate Government approval.
January, 2020
It chronicles the trends and features in the market, highlights competition issues in the e-commerce sector (such as platform neutrality, deep discounts, exclusive agreements, platform-to-business contracts, and platform price parity clauses) and provides the commission’s recommendations for the same while indicating certain self-regulatory guidelines for e-commerce platforms to increase transparency, reduce information asymmetry, and incentivise competition.
December, 2018
March, 2016
The policy allows FDI up to 100% under the automatic route in the marketplace model, but does not permit FDI in B2C e-commerce, except in specific cases like when a manufacturer sells its products manufactured in India. It also does not permit FDI in the inventory-based model of e-commerce, where the e-commerce entity owns the inventory of goods being sold.
February, 2016
