Alibaba Group has agreed to buy e-commerce business Kaola from Chinese gaming company NetEase for $2 billion, adding a platform that specializes in supplying curated luxury goods from abroad to domestic consumers.

Alibaba, which is looking for new revenue drivers as the e-commerce market at home matures, will also invest $700 million for a minority stake in Netease's music streaming arm as it takes on Chinese market leader Tencent Music.

The long-rumoured Kaola deal and the music investment highlight at once a defensive move to keep niche growth players out of the hands of e-commerce rivals such as Pinduoduo and Alibaba's flexibility in adopting new strategies.

Kaola, launched by NetEase in 2015, aggressively targets shoppers in China by offering products from top brands such as Gucci, Shisheido and Burberry, primarily sourcing goods directly from suppliers to resell to consumers.

Its more curated product line up based on popularity ensures it a loyal consumer base of shoppers, whereas Alibaba's Tmall allows a larger range of overseas brands to launch and manage virtual storefronts on its platform, said Ker Zheng, who tracks China's online retail sector at consultancy Azoya.

"Kaola does not have to share user time or basket space with cheaper, non-imported products," said Zheng.

Kaola and Yanxuan, another NetEase-run line of private-label, company-branded goods, accounted for nearly half the gaming company's revenue in the June quarter.

NetEase does not break down sales from Kaola.

Playing defence

The Kaola deal will boost Alibaba's access to wealthy Chinese buyers, who account for more than a third of the luxury goods sector's worldwide revenues, as online sales slow at home.

Online retail sales in China grew 17.8 per cent in the first half of 2019, versus 32.4 per cent a year earlier, government data shows.

The acquisition will also help the tech giant face rising competition from rivals such as Pinduoduo.

In response to competition from Pinduoduo, which offers group-buying deals on household goods, Alibaba has already revamped Juhuasuan, its group-buying service.

It also launched Taobao Xinxuan, a line of private-label, house-brand goods.

"Pinduoduo has a will to move towards international brands or cross-border e-commerce, so in the future, they would definitely want Kaola. For Alibaba, they'd want to prevent this," said Liu Yiming, who tracks China's e-commerce sector at the research division of 36kr.

The investment in NetEase Cloud Music, along with private-equity firm Yunfeng, which is backed by the tech giant's founder Jack Ma, is also a way for Alibaba and NetEase to ally against a common rival,&nbsp;Tencent Holdings.

Tencent Music dominates the Chinese music streaming market with an 83.8% share through three streaming services, according to Quest Mobile and Macquarie Research, but it recently reported the slowest increase in a key growth metric.

It is under investigation by China's antitrust authority in a review that could end exclusive licensing deals it forged with the world's biggest record labels, Bloomberg has reported.

Alibaba Group has agreed to buy e-commerce business Kaola from Chinese gaming company NetEase for $2 billion, adding a platform that specializes in supplying curated luxury goods from abroad to domestic consumers.

Alibaba Group has agreed to buy e-commerce business Kaola from Chinese gaming company NetEase for $2 billion, adding a platform that specializes in supplying curated luxury goods from abroad to domestic consumers. Alibaba, which is looking for new revenue drivers as the e-commerce market at home matures, will also invest $700 million for a minority stake in Netease's music streaming arm as it takes on Chinese market leader Tencent Music. The long-rumoured Kaola deal and the music investment highlight at once a defensive move to keep niche growth players out of the hands of e-commerce rivals such as Pinduoduo and Alibaba's flexibility in adopting new strategies. Kaola, launched by NetEase in 2015, aggressively targets shoppers in China by offering products from top brands such as Gucci, Shisheido and Burberry, primarily sourcing goods directly from suppliers to resell to consumers. Its more curated product line up based on popularity ensures it a loyal consumer base of shoppers, whereas Alibaba's Tmall allows a larger range of overseas brands to launch and manage virtual storefronts on its platform, said Ker Zheng, who tracks China's online retail sector at consultancy Azoya. "Kaola does not have to share user time or basket space with cheaper, non-imported products," said Zheng. Kaola and Yanxuan, another NetEase-run line of private-label, company-branded goods, accounted for nearly half the gaming company's revenue in the June quarter. NetEase does not break down sales from Kaola. Playing defence The Kaola deal will boost Alibaba's access to wealthy Chinese buyers, who account for more than a third of the luxury goods sector's worldwide revenues, as online sales slow at home. Online retail sales in China grew 17.8 per cent in the first half of 2019, versus 32.4 per cent a year earlier, government data shows. The acquisition will also help the tech giant face rising competition from rivals such as Pinduoduo. In response to competition from Pinduoduo, which offers group-buying deals on household goods, Alibaba has already revamped Juhuasuan, its group-buying service. It also launched Taobao Xinxuan, a line of private-label, house-brand goods. "Pinduoduo has a will to move towards international brands or cross-border e-commerce, so in the future, they would definitely want Kaola. For Alibaba, they'd want to prevent this," said Liu Yiming, who tracks China's e-commerce sector at the research division of 36kr. The investment in NetEase Cloud Music, along with private-equity firm Yunfeng, which is backed by the tech giant's founder Jack Ma, is also a way for Alibaba and NetEase to ally against a common rival, Tencent Holdings. Tencent Music dominates the Chinese music streaming market with an 83.8% share through three streaming services, according to Quest Mobile and Macquarie Research, but it recently reported the slowest increase in a key growth metric. It is under investigation by China's antitrust authority in a review that could end exclusive licensing deals it forged with the world's biggest record labels, Bloomberg has reported.

Alibaba dials up luxury push with $2 billion buys of Netease e-commerce arm

A US delegation is in New Delhi to hammer out differences over <a href="https://www.wionews.com/business-economy/amid-escalating-trade-tensions-us-india-begin-talks-235230">India's new investment rules</a> for the e-commerce which has considerably grown in size in last one decade. The bone of contention is a rule put in place by Prime Minister Narendra Modi just before the Lok Sabha elections.

The new rules barred companies from selling products via firms in which they have an equity interest and also from making deals with sellers to sell exclusively on their platform.

It was done to protect India's small trader community which forms the political backbone of BJP. Small traders in India had been complaining to the government for a long time that they are steadily losing their business to foreign e-commerce giants. While the new rule helped the Indian business, it was not taken kindly by the US e-commerce giants.

It is learnt that Walmart told the US government privately in January that India's new investment rules for e-commerce were regressive and have the potential to hurt trade ties. Walmart had invested US $16 billion in Indian e-commerce giant Flipkart, its biggest acquisition ever globally.

India's Commerce Minister Piyush Goyal has said that the government was committed to protecting small traders, but open to ironing out policy-related issues. Goyal said on Twitter on Wednesday that he met Walmart international CEO Judith MC Kenna and discussed ways of boosting sales of Indian made products.

Walmart told the United States trade representative in January that its unit Flipkart, as well as Amazon, had opened many new distribution centres over the past three years in India, creating thousands of jobs and benefitting the customers.

The US delegation will return on Friday after concluding talks with the Indian government.

A US delegation is in New Delhi to hammer out differences over India's new investment rules for the e-commerce which has considerably grown in size in last one decade.

A US delegation is in New Delhi to hammer out differences over India's new investment rules for the e-commerce which has considerably grown in size in last one decade. The bone of contention is a rule put in place by Prime Minister Narendra Modi just before the Lok Sabha elections. The new rules barred companies from selling products via firms in which they have an equity interest and also from making deals with sellers to sell exclusively on their platform. It was done to protect India's small trader community which forms the political backbone of BJP. Small traders in India had been complaining to the government for a long time that they are steadily losing their business to foreign e-commerce giants. While the new rule helped the Indian business, it was not taken kindly by the US e-commerce giants. It is learnt that Walmart told the US government privately in January that India's new investment rules for e-commerce were regressive and have the potential to hurt trade ties. Walmart had invested US $16 billion in Indian e-commerce giant Flipkart, its biggest acquisition ever globally. India's Commerce Minister Piyush Goyal has said that the government was committed to protecting small traders, but open to ironing out policy-related issues. Goyal said on Twitter on Wednesday that he met Walmart international CEO Judith MC Kenna and discussed ways of boosting sales of Indian made products. Walmart told the United States trade representative in January that its unit Flipkart, as well as Amazon, had opened many new distribution centres over the past three years in India, creating thousands of jobs and benefitting the customers. The US delegation will return on Friday after concluding talks with the Indian government.

US delegation to discuss India's new e-commerce rules during trade talks

Walmart told the <a href="https://www.wionews.com/india-news/india-us-trade-talks-to-restart-friday-amid-few-signs-of-compromise-234949">US government </a>privately in January that India's new investment rules for e-commerce were regressive and had the potential to hurt<a href="https://www.wionews.com/india-news/indias-high-tariffs-on-american-products-no-longer-acceptable-says-us-president-donald-trump-234420"> trade ties</a>, a company document was seen by Reuters showed.

The lobbying effort yielded no result at the time - India implemented the new rules from February 1 - but the document underlines the level of concern at Walmart about the rules. Differences over e-commerce regulations have become one of the biggest issues in frayed trade ties between New Delhi and Washington.

"It came as a total surprise ... this is a major change and a regressive policy shift," Walmart`s Senior Director for Global Government Affairs Sarah Thorn told the Office of the United States Trade Representative (USTR) in an e-mail on January 7.

Just months earlier, Walmart had invested $16 billion in Indian e-commerce giant Flipkart, its biggest ever acquisition globally.

In a statement to Reuters on Thursday, Walmart said it regularly offers input to the U.S. and Indian governments on policy issues and this was a "past issue and Walmart and Flipkart are looking ahead".

The USTR did not respond to a request for comment.

In the January letter to the USTR, Walmart said it wanted a six-month delay in the implementation of the rules, but that did not happen. Washington did raise concerns about the policy with New Delhi, but India gave a non-committal response, an Indian trade ministry official told Reuters at the time.

Walmart`s problems in India highlight the regulatory complications it faces as it restructures its international business to boost growth and online sales. Mexico`s competition regulator recently blocked its acquisition of delivery app Cornershop, while in Britain it was stopped from merging its British arm Asda with rival Sainsbury's.

These issues, however, have failed to unnerve Walmart investors. Walmart shares have risen 21 per cent, compared with a 19 per cent increase for the S&amp;P 500 since the start of the year.

New India rules

E-commerce is likely to again be on the agenda on Friday when a USTR delegation meets Indian trade officials in New Delhi.

In its January representation, Walmart told the USTR that India`s new policy wasn't good for global businesses, highlighting that its foreign direct investment would help Flipkart grow and result in "significant" tax revenues for New Delhi.

"Changing rules to hinder international business following major investments ... will have important implications for India FDI goals and add unnecessary pressure to trade discussions," Walmart said in its note.

The new rules barred companies from selling products via firms in which they have an equity interest and also from making deals with sellers to sell exclusively on their platforms.

Amazon.com Inc removed thousands of products from its India website briefly in February as it initially struggled to comply with the new policy. Flipkart was forced to rework some of its vendor relationships, sources told Reuters at the time.

The policy, implemented by Prime Minister Narendra Modi months before his re-election in May, was seen aimed at winning the support of small Indian traders, who had long complained they were losing business due to the steep discounts offered by foreign e-commerce giants.

"The action appears in every respect ... intended to placate Indian companies and local traders," Walmart told the USTR.

Small traders vs Big retailers

Reuters obtained the two-page representation Walmart sent to the USTR through a Freedom of Information Act request first filed in January. The USTR in February provided a heavily-redacted version of the document, citing confidentiality reasons. In consultation with Walmart, it withdrew most of those redactions this week following an appeal from Reuters.

Although Reuters asked for both Amazon and Walmart`s communications, the USTR responded saying it found only one e-mail with Walmart`s representation between Dec. 22 and Jan. 28, the period for which the records were searched.

Since the policy has been announced, Indian oil-to-telecoms conglomerate Reliance Industries has repeatedly talked about its plans to diversify into e-commerce.

Walmart's document released to Reuters did not name Reliance, but the Bentonville, Arkansas-based company argued the policy discriminated against foreign firms, and not just in favour of small domestic players.

"The purported rationale of such regulations is to protect small retail players who are seen to be threatened," Walmart said, but added: "This argument does not account for why there should be differentiated treatment between large foreign eCommerce companies, and large domestic companies."

In the past six months, several Walmart executives have also weighed in publicly on India`s new e-commerce policy, including Chief Executive Doug McMillon, who said in February the company was disappointed by the Indian government`s decision.

"We hope for a collaborative regulatory process going forward, which results in a level playing field," he said.

Defending e-commerce

India's Commerce Minister Piyush Goyal has said the government was committed to protecting small traders, but open to ironing out policy-related issues. Goyal said on Twitter on Wednesday he had met Walmart International`s CEO, Judith McKenna, and discussed ways of boosting sales of Indian-made products.

In a closed-door meeting last month, however, Goyal warned both Flipkart and Amazon to comply with the new rules in letter and spirit, and questioned them on their discounting policies, Reuters has reported.

The Walmart spokeswoman on Thursday said that, in line with the company's commitment to India, it looked forward to contributing to the country's retail ecosystem. "Walmart has had good consultations with the Government of India," she said.

Amazon was not aware of Walmart`s January representation to the USTR, according to a person with direct knowledge. The company in a statement said it continued to engage with New Delhi to enhance infrastructure and create jobs.

Walmart told the USTR in January that its unit Flipkart, as well as Amazon, had opened many new distribution centres over the past three years in India, creating thousands of jobs and greatly benefiting to consumers.

It warned of "serious consequences" if the new policy was implemented hastily. "The lack of policy stability makes it very difficult for companies to continue planned investments, both in the eCommerce sector and beyond," Walmart wrote.

Walmart told the US government privately in January that India's new investment rules for e-commerce were regressive and had the potential to hurt trade ties, a company document was seen by Reuters showed.

Walmart told the US government privately in January that India's new investment rules for e-commerce were regressive and had the potential to hurt trade ties, a company document was seen by Reuters showed. The lobbying effort yielded no result at the time - India implemented the new rules from February 1 - but the document underlines the level of concern at Walmart about the rules. Differences over e-commerce regulations have become one of the biggest issues in frayed trade ties between New Delhi and Washington. "It came as a total surprise ... this is a major change and a regressive policy shift," Walmart`s Senior Director for Global Government Affairs Sarah Thorn told the Office of the United States Trade Representative (USTR) in an e-mail on January 7. Just months earlier, Walmart had invested $16 billion in Indian e-commerce giant Flipkart, its biggest ever acquisition globally. In a statement to Reuters on Thursday, Walmart said it regularly offers input to the U.S. and Indian governments on policy issues and this was a "past issue and Walmart and Flipkart are looking ahead". The USTR did not respond to a request for comment. In the January letter to the USTR, Walmart said it wanted a six-month delay in the implementation of the rules, but that did not happen. Washington did raise concerns about the policy with New Delhi, but India gave a non-committal response, an Indian trade ministry official told Reuters at the time. Walmart`s problems in India highlight the regulatory complications it faces as it restructures its international business to boost growth and online sales. Mexico`s competition regulator recently blocked its acquisition of delivery app Cornershop, while in Britain it was stopped from merging its British arm Asda with rival Sainsbury's. These issues, however, have failed to unnerve Walmart investors. Walmart shares have risen 21 per cent, compared with a 19 per cent increase for the S&P 500 since the start of the year. New India rules E-commerce is likely to again be on the agenda on Friday when a USTR delegation meets Indian trade officials in New Delhi. In its January representation, Walmart told the USTR that India`s new policy wasn't good for global businesses, highlighting that its foreign direct investment would help Flipkart grow and result in "significant" tax revenues for New Delhi. "Changing rules to hinder international business following major investments ... will have important implications for India FDI goals and add unnecessary pressure to trade discussions," Walmart said in its note. The new rules barred companies from selling products via firms in which they have an equity interest and also from making deals with sellers to sell exclusively on their platforms. Amazon.com Inc removed thousands of products from its India website briefly in February as it initially struggled to comply with the new policy. Flipkart was forced to rework some of its vendor relationships, sources told Reuters at the time. The policy, implemented by Prime Minister Narendra Modi months before his re-election in May, was seen aimed at winning the support of small Indian traders, who had long complained they were losing business due to the steep discounts offered by foreign e-commerce giants. "The action appears in every respect ... intended to placate Indian companies and local traders," Walmart told the USTR. Small traders vs Big retailers Reuters obtained the two-page representation Walmart sent to the USTR through a Freedom of Information Act request first filed in January. The USTR in February provided a heavily-redacted version of the document, citing confidentiality reasons. In consultation with Walmart, it withdrew most of those redactions this week following an appeal from Reuters. Although Reuters asked for both Amazon and Walmart`s communications, the USTR responded saying it found only one e-mail with Walmart`s representation between Dec. 22 and Jan. 28, the period for which the records were searched. Since the policy has been announced, Indian oil-to-telecoms conglomerate Reliance Industries has repeatedly talked about its plans to diversify into e-commerce. Walmart's document released to Reuters did not name Reliance, but the Bentonville, Arkansas-based company argued the policy discriminated against foreign firms, and not just in favour of small domestic players. "The purported rationale of such regulations is to protect small retail players who are seen to be threatened," Walmart said, but added: "This argument does not account for why there should be differentiated treatment between large foreign eCommerce companies, and large domestic companies." In the past six months, several Walmart executives have also weighed in publicly on India`s new e-commerce policy, including Chief Executive Doug McMillon, who said in February the company was disappointed by the Indian government`s decision. "We hope for a collaborative regulatory process going forward, which results in a level playing field," he said. Defending e-commerce India's Commerce Minister Piyush Goyal has said the government was committed to protecting small traders, but open to ironing out policy-related issues. Goyal said on Twitter on Wednesday he had met Walmart International`s CEO, Judith McKenna, and discussed ways of boosting sales of Indian-made products. In a closed-door meeting last month, however, Goyal warned both Flipkart and Amazon to comply with the new rules in letter and spirit, and questioned them on their discounting policies, Reuters has reported. The Walmart spokeswoman on Thursday said that, in line with the company's commitment to India, it looked forward to contributing to the country's retail ecosystem. "Walmart has had good consultations with the Government of India," she said. Amazon was not aware of Walmart`s January representation to the USTR, according to a person with direct knowledge. The company in a statement said it continued to engage with New Delhi to enhance infrastructure and create jobs. Walmart told the USTR in January that its unit Flipkart, as well as Amazon, had opened many new distribution centres over the past three years in India, creating thousands of jobs and greatly benefiting to consumers. It warned of "serious consequences" if the new policy was implemented hastily. "The lack of policy stability makes it very difficult for companies to continue planned investments, both in the eCommerce sector and beyond," Walmart wrote.

India's e-commerce rules regressive, potential to hurt trade ties: Walmart told US government

<a href="https://www.wionews.com/business-economy/amazon-raises-stakes-for-rivals-with-one-day-delivery-goal-after-profit-surge-213573">Online marketplace Amazon</a> Tuesday said it expects e-commerce exports from India to reach $5 billion by 2023 under its global selling programme.

"Amazon launched the global selling programme in India four years ago, aligning with this vision. Over the next five years, 'India to Global' has the potential to become huge," Amazon India Country Head Amit Agarwal said in a statement.

He said the firm is confident that the "global selling programme will hit the $5-billion mark by 2023 fuelling the growth of lakhs of Indian manufacturers, exporters and small enterprises".

The programme started with just a few hundred sellers in 2015 and has now crossed $1-billion export mark from India with 50,000 exporters.

Amazon in the second edition of its annual 'Export Digest' said there has been a growth of 56 per cent in the number of global sellers from India in 2018.

It said Amazon's international marketplaces saw a rise of 55 per cent in the selection of Indian products offered globally and 71 per cent growth in sellers.

"The Annual Exports Digest showcases top Indian states and cities with international exporters and most popular product categories abroad. Delhi, Rajasthan, Maharashtra,

Gujarat, Uttar Pradesh and Haryana emerged as the leading states with most international exporters on Amazon in 2018," the statement said.

It added that books, apparel, jewellery, kitchen and health &amp; personal care products witnessed a huge demand from international customers across ethnicities.

Online marketplace Amazon Tuesday said it expects e-commerce exports from India to reach $5 billion by 2023 under its global selling programme. "Amazon launched the global selling programme in India four years ago, aligning with this vision.

Online marketplace Amazon Tuesday said it expects e-commerce exports from India to reach $5 billion by 2023 under its global selling programme. "Amazon launched the global selling programme in India four years ago, aligning with this vision. Over the next five years, 'India to Global' has the potential to become huge," Amazon India Country Head Amit Agarwal said in a statement. He said the firm is confident that the "global selling programme will hit the $5-billion mark by 2023 fuelling the growth of lakhs of Indian manufacturers, exporters and small enterprises". The programme started with just a few hundred sellers in 2015 and has now crossed $1-billion export mark from India with 50,000 exporters. Amazon in the second edition of its annual 'Export Digest' said there has been a growth of 56 per cent in the number of global sellers from India in 2018. It said Amazon's international marketplaces saw a rise of 55 per cent in the selection of Indian products offered globally and 71 per cent growth in sellers. "The Annual Exports Digest showcases top Indian states and cities with international exporters and most popular product categories abroad. Delhi, Rajasthan, Maharashtra, Gujarat, Uttar Pradesh and Haryana emerged as the leading states with most international exporters on Amazon in 2018," the statement said. It added that books, apparel, jewellery, kitchen and health & personal care products witnessed a huge demand from international customers across ethnicities.

Amazon targets $5 billion e-commerce exports from India by 2023

Industry body CII Tuesday said the proposed national e-commerce policy should provide greater clarity on data sharing as forced disclosure may raise concerns on privacy.

In its comments on the draft policy floated by the department for the promotion of industry and internal trade (DPIIT), it also said the regulations should not aim at "micromanaging" players in the e-commerce sector but should act as an enabler to promote innovations.

In February, the DPIIT floated the draft policy proposing setting up a legal and technological framework for restrictions on cross-border data flow and also laid out conditions for businesses regarding the collection or processing of sensitive data locally and storing it abroad.

In its suggestions, the CII said the role of an e-commerce platform is that of an intermediary and hence the responsibility of preventing IP infringements while limited, is a joint one with the larger role around liability and gatekeeping on the seller/ manufacturer.

"Forced disclosures and data sharing can infringe privacy concerns and hence greater clarity and calibration are required on the context, procedure, and expectations around the government's right to mandate the forced transfer of proprietary information," CII said.&nbsp;

The draft says that a business entity that collects or processes any sensitive data in India and stores it abroad, shall be required to adhere to certain conditions.&nbsp;

The conditions state that all such data stored abroad shall not be made available to other business entities outside India, for any purpose, even with the customer's consent.&nbsp;

Further, the data shall also not be made available to a third party for any purpose and it would also not be shared with a foreign government, without the prior permission of Indian authorities, the draft said.

CII further suggested that the e-commerce policy should not aim for a one size fits all approach but take into account the diversity of organizations and industries it affects.&nbsp; 
"Hence, the policy should determine its scope of work and aim to limit its overreach accordingly," it said.

Also, the regulation should not aim to micromanage or overpower innovation but to become an enabler of innovation and opportunities. 
Ritesh Agarwal, Chairman, CII National Committee on e-commerce said in the last decade, e-commerce has touched every aspect of lives and is growing at an impressive pace.&nbsp;

"Through this committee's representation to the DPIIT, we will explore ways to increase economic opportunities and empower businesses," he said. 
Anjan Das, Executive Director of CII said any legal framework impacting the e-commerce ecosystem is of critical importance for both consumers as well as service providers.&nbsp;

CII said it has held stakeholder consultation and invited them to provide detailed comments, issues and proposed solutions that have been compiled to form a comprehensive list of responses to the draft policy.

Industry body CII Tuesday said the proposed national e-commerce policy should provide greater clarity on data sharing as forced disclosure may raise concerns on privacy.

Industry body CII Tuesday said the proposed national e-commerce policy should provide greater clarity on data sharing as forced disclosure may raise concerns on privacy. In its comments on the draft policy floated by the department for the promotion of industry and internal trade (DPIIT), it also said the regulations should not aim at "micromanaging" players in the e-commerce sector but should act as an enabler to promote innovations. In February, the DPIIT floated the draft policy proposing setting up a legal and technological framework for restrictions on cross-border data flow and also laid out conditions for businesses regarding the collection or processing of sensitive data locally and storing it abroad. In its suggestions, the CII said the role of an e-commerce platform is that of an intermediary and hence the responsibility of preventing IP infringements while limited, is a joint one with the larger role around liability and gatekeeping on the seller/ manufacturer. "Forced disclosures and data sharing can infringe privacy concerns and hence greater clarity and calibration are required on the context, procedure, and expectations around the government's right to mandate the forced transfer of proprietary information," CII said. The draft says that a business entity that collects or processes any sensitive data in India and stores it abroad, shall be required to adhere to certain conditions. The conditions state that all such data stored abroad shall not be made available to other business entities outside India, for any purpose, even with the customer's consent. Further, the data shall also not be made available to a third party for any purpose and it would also not be shared with a foreign government, without the prior permission of Indian authorities, the draft said. CII further suggested that the e-commerce policy should not aim for a one size fits all approach but take into account the diversity of organizations and industries it affects. "Hence, the policy should determine its scope of work and aim to limit its overreach accordingly," it said. Also, the regulation should not aim to micromanage or overpower innovation but to become an enabler of innovation and opportunities. Ritesh Agarwal, Chairman, CII National Committee on e-commerce said in the last decade, e-commerce has touched every aspect of lives and is growing at an impressive pace. "Through this committee's representation to the DPIIT, we will explore ways to increase economic opportunities and empower businesses," he said. Anjan Das, Executive Director of CII said any legal framework impacting the e-commerce ecosystem is of critical importance for both consumers as well as service providers. CII said it has held stakeholder consultation and invited them to provide detailed comments, issues and proposed solutions that have been compiled to form a comprehensive list of responses to the draft policy.

Greater clarity required on data sharing, CII on draft e-commerce policy

<a href="http://www.wionews.com/business-economy/restrictions-on-foreign-e-commerce-companies-to-hit-fdi-in-india-us-industry-body-187129">India's new foreign investment</a> restrictions for its e-commerce sector, which includes giants such as Amazon.com Inc and Walmart-owned Flipkart, could reduce online sales by $46 billion by 2022, according to a draft analysis from global consultants PwC seen by Reuters.

Under the changes, e-commerce firms in India will from February 1 not be able to sell products via companies in which they have an equity interest or push sellers to sell exclusively on their platforms.

Announced in December, just months before a general election due by May this year, the rules were seen as an attempt by Prime Minister Narendra Modi's government to appease millions of small traders and shopkeepers, who form a key voter base and say their businesses have been threatened by global online retailers.

Industry sources told Reuters the policy would delay or derail some investment plans and push companies such as Amazon and Flipkart to create new, more complex business structures.

In a private analysis PwC conducted based on estimates provided by the industry and using publicly available information, it forecast that online retail sales growth, tax collections and job creation would be severely hit if companies changed their business models to comply with the new policy.

The draft analysis has not been made public. PwC India, in response to Reuters' questions, said it "does not endorse any of these assumptions or conclusions, nor have we conducted any independent study on this".

"As a matter of policy, we do not comment on company-specific issues," PwC said.

The analysis produced by PwC showed that the gross merchandise value of goods sold online could reduce by $800 million from expectations in the current fiscal year that ends in March, a document seen by Reuters showed. Then, the sales would dip drastically below previous forecasts, lopping off $45.2 billion in the next three years, the data showed.

To be sure, sales would still be growing, but at a less robust rate than envisaged before the policy change.

Online retailers often use gross merchandise value, or GMV, based on monthly online sales as a measurement of performance, as they typically make revenue from the commissions they get from sellers.

The analysis also said that by March 2022 the Indian policy could lead to the creation of 1.1 million fewer jobs that may have been previously expected and lead to a reduction in taxes collected of $6 billion.

Amazon and Flipkart have both sought an extension of the Feb. 1 deadline, but a source at India's commerce ministry told Reuters the government was unlikely to agree.

Amazon said in a statement it remains "committed to being compliant to all local laws" but has asked the government for an extension of four months.

Flipkart has sought a six-month extension, a source said. Though the company did not respond to Reuters questions, it told India's Economic Times newspaper that it believed "an extension is appropriate" to ensure that all elements of the policy were clarified.

After Reuters' story was published, the Confederation of All India Traders (CAIT) issued a statement saying it disputed PwC's analysis. CAIT has supported tougher scrutiny of large e-commerce players, saying they indulge in predatory pricing that hurts smaller traders.

POLICY SETBACK

The e-commerce investment policy is the latest flashpoint between India and US multinationals. US companies have in the past two years protested against a wide array of regulations - from policies calling on tech companies to store more data locally to those capping prices of imported medical devices.

Morgan Stanley had estimated, before the latest government move, that India's e-commerce market would grow 30 per cent a year to $200 billion in the 10 years up to 2027. With the rising use of the Internet and smartphones in India, online retailers have doled out discounts to lure people to shop online for everything from basic groceries to large electronic devices.

The new policy, which followed intense lobbying by groups representing millions of India's small traders and shopkeepers, was aimed to prevent such deep discounting by big online retailers.

Trader groups had alleged that online firms used their control over inventory from their affiliates, and through exclusive sales agreements, to create an unfair marketplace that allowed them to sell some products at lower prices. Such arrangements would be barred under the new policy.

A second official at India's commerce ministry said on Wednesday "there may not be any relaxations" in the policy. "We have already done whatever was required," the official said.

BIG INVESTMENTS

Amazon has committed to investing $5.5 billion in India, while Walmart last year spent $16 billion to acquire Flipkart.

"After one of the biggest foreign investments by Walmart, the government has again blindsided foreign investors," said Pratibha Jain, a partner at law firm Nishith Desai Associates, which advises e-commerce companies, adding that such policy moves made India "a difficult place to do business".

India's commerce minister, Suresh Prabhu, has said the e-commerce policy was "very clear", though the government was open to hearing views of companies.

"We would like to assure all foreign investors and domestic investors we will have a stable, clear policy," Prabhu told ET Now news channel last week.

The CAIT on Wednesday said it would fight "tooth and nail" if the government made any changes to the e-commerce policy under pressure from US companies.

"If they want to exit the country they should do it as soon as possible," said the group's secretary general, Praveen Khandelwal, adding they planned to hold meetings with the commerce minister to ensure the new policy was not "compromised".

India's new foreign investment restrictions for its e-commerce sector, which includes giants such as Amazon.com Inc and Walmart-owned Flipkart, could reduce online sales by $46 billion by 2022, according to a draft analysis from global consultants PwC seen by Reuters.

India's new foreign investment restrictions for its e-commerce sector, which includes giants such as Amazon.com Inc and Walmart-owned Flipkart, could reduce online sales by $46 billion by 2022, according to a draft analysis from global consultants PwC seen by Reuters. Under the changes, e-commerce firms in India will from February 1 not be able to sell products via companies in which they have an equity interest or push sellers to sell exclusively on their platforms. Announced in December, just months before a general election due by May this year, the rules were seen as an attempt by Prime Minister Narendra Modi's government to appease millions of small traders and shopkeepers, who form a key voter base and say their businesses have been threatened by global online retailers. Industry sources told Reuters the policy would delay or derail some investment plans and push companies such as Amazon and Flipkart to create new, more complex business structures. In a private analysis PwC conducted based on estimates provided by the industry and using publicly available information, it forecast that online retail sales growth, tax collections and job creation would be severely hit if companies changed their business models to comply with the new policy. The draft analysis has not been made public. PwC India, in response to Reuters' questions, said it "does not endorse any of these assumptions or conclusions, nor have we conducted any independent study on this". "As a matter of policy, we do not comment on company-specific issues," PwC said. The analysis produced by PwC showed that the gross merchandise value of goods sold online could reduce by $800 million from expectations in the current fiscal year that ends in March, a document seen by Reuters showed. Then, the sales would dip drastically below previous forecasts, lopping off $45.2 billion in the next three years, the data showed. To be sure, sales would still be growing, but at a less robust rate than envisaged before the policy change. Online retailers often use gross merchandise value, or GMV, based on monthly online sales as a measurement of performance, as they typically make revenue from the commissions they get from sellers. The analysis also said that by March 2022 the Indian policy could lead to the creation of 1.1 million fewer jobs that may have been previously expected and lead to a reduction in taxes collected of $6 billion. Amazon and Flipkart have both sought an extension of the Feb. 1 deadline, but a source at India's commerce ministry told Reuters the government was unlikely to agree. Amazon said in a statement it remains "committed to being compliant to all local laws" but has asked the government for an extension of four months. Flipkart has sought a six-month extension, a source said. Though the company did not respond to Reuters questions, it told India's Economic Times newspaper that it believed "an extension is appropriate" to ensure that all elements of the policy were clarified. After Reuters' story was published, the Confederation of All India Traders (CAIT) issued a statement saying it disputed PwC's analysis. CAIT has supported tougher scrutiny of large e-commerce players, saying they indulge in predatory pricing that hurts smaller traders. POLICY SETBACK The e-commerce investment policy is the latest flashpoint between India and US multinationals. US companies have in the past two years protested against a wide array of regulations - from policies calling on tech companies to store more data locally to those capping prices of imported medical devices. Morgan Stanley had estimated, before the latest government move, that India's e-commerce market would grow 30 per cent a year to $200 billion in the 10 years up to 2027. With the rising use of the Internet and smartphones in India, online retailers have doled out discounts to lure people to shop online for everything from basic groceries to large electronic devices. The new policy, which followed intense lobbying by groups representing millions of India's small traders and shopkeepers, was aimed to prevent such deep discounting by big online retailers. Trader groups had alleged that online firms used their control over inventory from their affiliates, and through exclusive sales agreements, to create an unfair marketplace that allowed them to sell some products at lower prices. Such arrangements would be barred under the new policy. A second official at India's commerce ministry said on Wednesday "there may not be any relaxations" in the policy. "We have already done whatever was required," the official said. BIG INVESTMENTS Amazon has committed to investing $5.5 billion in India, while Walmart last year spent $16 billion to acquire Flipkart. "After one of the biggest foreign investments by Walmart, the government has again blindsided foreign investors," said Pratibha Jain, a partner at law firm Nishith Desai Associates, which advises e-commerce companies, adding that such policy moves made India "a difficult place to do business". India's commerce minister, Suresh Prabhu, has said the e-commerce policy was "very clear", though the government was open to hearing views of companies. "We would like to assure all foreign investors and domestic investors we will have a stable, clear policy," Prabhu told ET Now news channel last week. The CAIT on Wednesday said it would fight "tooth and nail" if the government made any changes to the e-commerce policy under pressure from US companies. "If they want to exit the country they should do it as soon as possible," said the group's secretary general, Praveen Khandelwal, adding they planned to hold meetings with the commerce minister to ensure the new policy was not "compromised".

India's curbs on e-commerce could hit online sales by $46 billion by 2022: PwC draft analysis

Expressing concern over India tightening restrictions on foreign e-commerce companies operating in the country, leading American industry advocacy groups have said that such a move would have a long-term negative impact on the foreign direct investment as well as consumers.

Earlier this week, the government announced changes to the foreign direct investment policy for the ecommerce sector, which would end discounts and cashback offers that online platforms with foreign investment were offering.&nbsp;

Flipkart and US-based Amazon -- the two largest players in the burgeoning Indian e-commerce sector -- are expected to be hit the hardest once the new norms come into effect from February 2019.

"The new e-commerce restrictions announced by the government of India on December 26 are a cause for concern. While we are still trying to understand the full implications, we fear that these restrictions will have a far-reaching negative impact both on US investments and on Indian consumers," said Nisha Desai Biswal, president of US India Chambers of Commerce (USAIC), a wing of the US Chambers of Commerce.

The former Assistant Secretary of State for South and Central Asia said the US-India Business Council (USIBC) said that a February 1 deadline is too rushed and does not allow sufficient time for companies to analyse the policy and to comply.

"We urge the government to delay implementation and allow time for comment before the policy goes into effect,"&nbsp;Biswal said.

Mukesh Aghi, president of US India Strategic and Partnership Forum (USISPF) said "this is not in the best interest of the Indian consumers."&nbsp;

"Coming out with such a major policy change overnight without any consultative process eats into the predictability&nbsp;and reliability factor that all US companies are looking into India for any foreign direct investment," he said.

"I wish there was a little more consultative process, because you have companies like Walmart, which has put in $16 billion and they are in the process of putting more money to streamline their investment, it makes our job more difficult because how do I go and tell them please invest more and the policy would not change overnight,"&nbsp;said Aghi, who has been working with US companies to make large scale investment in India.&nbsp;

"I have embarked on a campaign convincing US company manufacturing in China to move it to India. How do I tell them, hey policies overnight would not change,"&nbsp;he said, adding that with such policy pronouncements, India can't have a "transparent, predictable environment"&nbsp;which is a must for any foreign company to invest.

Referring to Union Commerce and Industries Minister Suresh Prabhu's remarks that he wants to focus on bringing $100 billion FDI to India, Aghi said the first thing is to have a predictability in a regulatory environment.&nbsp;

This process sends the opposite message,&nbsp;he said.&nbsp;

Expressing concern over India tightening restrictions on foreign e-commerce companies operating in the country, leading American industry advocacy groups have said that such a move would have a long-term negative impact on the foreign direct investment as well as consumers.

Expressing concern over India tightening restrictions on foreign e-commerce companies operating in the country, leading American industry advocacy groups have said that such a move would have a long-term negative impact on the foreign direct investment as well as consumers. Earlier this week, the government announced changes to the foreign direct investment policy for the ecommerce sector, which would end discounts and cashback offers that online platforms with foreign investment were offering. Flipkart and US-based Amazon -- the two largest players in the burgeoning Indian e-commerce sector -- are expected to be hit the hardest once the new norms come into effect from February 2019. "The new e-commerce restrictions announced by the government of India on December 26 are a cause for concern. While we are still trying to understand the full implications, we fear that these restrictions will have a far-reaching negative impact both on US investments and on Indian consumers," said Nisha Desai Biswal, president of US India Chambers of Commerce (USAIC), a wing of the US Chambers of Commerce. The former Assistant Secretary of State for South and Central Asia said the US-India Business Council (USIBC) said that a February 1 deadline is too rushed and does not allow sufficient time for companies to analyse the policy and to comply. "We urge the government to delay implementation and allow time for comment before the policy goes into effect," Biswal said. Mukesh Aghi, president of US India Strategic and Partnership Forum (USISPF) said "this is not in the best interest of the Indian consumers." "Coming out with such a major policy change overnight without any consultative process eats into the predictability and reliability factor that all US companies are looking into India for any foreign direct investment," he said. "I wish there was a little more consultative process, because you have companies like Walmart, which has put in $16 billion and they are in the process of putting more money to streamline their investment, it makes our job more difficult because how do I go and tell them please invest more and the policy would not change overnight," said Aghi, who has been working with US companies to make large scale investment in India. "I have embarked on a campaign convincing US company manufacturing in China to move it to India. How do I tell them, hey policies overnight would not change," he said, adding that with such policy pronouncements, India can't have a "transparent, predictable environment" which is a must for any foreign company to invest. Referring to Union Commerce and Industries Minister Suresh Prabhu's remarks that he wants to focus on bringing $100 billion FDI to India, Aghi said the first thing is to have a predictability in a regulatory environment. This process sends the opposite message, he said.

Restrictions on foreign e-commerce companies to hit FDI in India: Report

India will announce a new draft policy for<a href="http://www.wionews.com/business-economy/flipkart-amazon-sale-may-become-history-as-govt-tightens-e-commerce-norms-186710"> e-commerce in a few weeks</a>, a source in the government said on Thursday, a day after the country tweaked foreign investment rules for the burgeoning sector.

The new e-commerce policy could entail provisions for a regulator in the sector dominated by US tech giant Amazon.com and homegrown Flipkart, which was bought over by retail giant Walmart for $16 billion earlier this year.

India on Wednesday introduced changes to foreign direct investment rules, banning e-commerce players from selling products from entities in which they have an equity interest, a move the source said was aimed at preventing anti-competitive practices. The source declined to be named as the matter was not public.

Meanwhile, the Indian government said that the companies will be prevented from entering into exclusive agreements with sellers. The new rules will be applicable from February 1.

"An entity having equity participation by e-commerce marketplace entity or its group companies, or having control on its inventory by e-commerce marketplace entity or its group companies, will not be permitted to sell its products on the platform run by such marketplace entity," the commerce ministry said in a statement.

E-commerce companies can make bulk purchases through their wholesale units or other group companies that in turn sell the products to select sellers, such as their affiliates or other companies with which they have agreements. Those sellers can then sell the products to other companies or direct to consumers, often at attractively low prices.

India will announce a new draft policy for e-commerce in a few weeks, a source in the government said on Thursday, a day after the country tweaked foreign investment rules for the burgeoning sector.

India will announce a new draft policy for e-commerce in a few weeks, a source in the government said on Thursday, a day after the country tweaked foreign investment rules for the burgeoning sector. The new e-commerce policy could entail provisions for a regulator in the sector dominated by US tech giant Amazon.com and homegrown Flipkart, which was bought over by retail giant Walmart for $16 billion earlier this year. India on Wednesday introduced changes to foreign direct investment rules, banning e-commerce players from selling products from entities in which they have an equity interest, a move the source said was aimed at preventing anti-competitive practices. The source declined to be named as the matter was not public. Meanwhile, the Indian government said that the companies will be prevented from entering into exclusive agreements with sellers. The new rules will be applicable from February 1. "An entity having equity participation by e-commerce marketplace entity or its group companies, or having control on its inventory by e-commerce marketplace entity or its group companies, will not be permitted to sell its products on the platform run by such marketplace entity," the commerce ministry said in a statement. E-commerce companies can make bulk purchases through their wholesale units or other group companies that in turn sell the products to select sellers, such as their affiliates or other companies with which they have agreements. Those sellers can then sell the products to other companies or direct to consumers, often at attractively low prices.

Online shopping set to change: Govt to issue draft e-commerce policy in a few weeks

Tightening norms for e-commerce firms having foreign investment, the government Wednesday barred online marketplaces like Flipkart and Amazon from selling products of companies where they hold stakes and banned exclusive marketing arrangements that could influence product price.

The revised policy on foreign direct investment in online retail, issued by the commerce and industry ministry, also said that these firms have to offer equal services or facilities to all its vendors without discrimination.

The revised norms are aimed at protecting the interest of domestic players, who have to face tough competition from e-retailers having deep pockets from foreign investors, the ministry said.

The policy would be effective from February 2019.

"The move would completely prevent influencing prices by e-commerce players. This will also ensure better enforcement of FDI guidelines in e-commerce companies," a senior official said.

The policy says a vendor will not be permitted to sell more than 25 per cent of its products on an online platform of a single e-marketplace firm.

"Inventory of a vendor will be deemed to be controlled by e-commerce marketplace entity if more than 25 per cent of purchases of such vendor is from the marketplace entity or its group companies," the commerce and industry ministry's press note said.

"An entity having equity participation by e-commerce marketplace entity or its group companies, or having control on its inventory by e-commerce marketplace entity or its group companies, will not be permitted to sell its products on the platform run by such marketplace entity".

E-commerce marketplace entity "will not mandate" any seller to sell any good "exclusively" on its platform "only", the note said.

Any service like logistics provided by e-commerce companies to vendors in which they have direct or indirect equity participation or common control stake should be fair and non-discriminatory.

These services include logistics, warehousing, advertisement, marketing, payments, financing etc.

It said that cash back provided by group companies of marketplace entity to buyers should be fair and non-discriminatory.

"For the purposes of this clause, provision of services to any vendor on such terms which are not made available to other vendors in similar circumstances will be deemed unfair and discriminatory," it added.

It further said that these companies will have to file a certificate along with a report of the statutory auditor to the RBI, confirming compliance of guidelines by September 30th of every year for the preceding fiscal.

The decision comes against the backdrop of several complaints being flagged by domestic traders on heavy discounts being given by e-commerce players to consumers.

According to the current policy, 100 per cent FDI is permitted in marketplace e-commerce activities. It is prohibited in inventory-based activities.

Welcoming the move, Snapdeal CEO Kunal Bahl tweeted that "Marketplaces are meant for genuine, independent sellers, many of whom are MSMEs. These changes will enable a level playing field for all sellers, helping them leverage the reach of e-commerce".

Amazon India spokesperson said: "We are evaluating the circular". 
A senior e-commerce industry executive of another company said that the move could adversely impact investments being made to bring new sellers on board.&nbsp;

Traders body CAIT said if the steps are implemented in proper spirit, mal-practices and predatory pricing policy and deep discounting of e-commerce players will be a matter of past.

The CAIT also demanded the introduction of an e-commerce policy and a regulator to monitor the sector.

Tightening norms for e-commerce firms having foreign investment, the government Wednesday barred online marketplaces like Flipkart and Amazon from selling products of companies where they hold stakes and banned exclusive marketing arrangements that could influence product price.

Tightening norms for e-commerce firms having foreign investment, the government Wednesday barred online marketplaces like Flipkart and Amazon from selling products of companies where they hold stakes and banned exclusive marketing arrangements that could influence product price. The revised policy on foreign direct investment in online retail, issued by the commerce and industry ministry, also said that these firms have to offer equal services or facilities to all its vendors without discrimination. The revised norms are aimed at protecting the interest of domestic players, who have to face tough competition from e-retailers having deep pockets from foreign investors, the ministry said. The policy would be effective from February 2019. "The move would completely prevent influencing prices by e-commerce players. This will also ensure better enforcement of FDI guidelines in e-commerce companies," a senior official said. The policy says a vendor will not be permitted to sell more than 25 per cent of its products on an online platform of a single e-marketplace firm. "Inventory of a vendor will be deemed to be controlled by e-commerce marketplace entity if more than 25 per cent of purchases of such vendor is from the marketplace entity or its group companies," the commerce and industry ministry's press note said. "An entity having equity participation by e-commerce marketplace entity or its group companies, or having control on its inventory by e-commerce marketplace entity or its group companies, will not be permitted to sell its products on the platform run by such marketplace entity". E-commerce marketplace entity "will not mandate" any seller to sell any good "exclusively" on its platform "only", the note said. Any service like logistics provided by e-commerce companies to vendors in which they have direct or indirect equity participation or common control stake should be fair and non-discriminatory. These services include logistics, warehousing, advertisement, marketing, payments, financing etc. It said that cash back provided by group companies of marketplace entity to buyers should be fair and non-discriminatory. "For the purposes of this clause, provision of services to any vendor on such terms which are not made available to other vendors in similar circumstances will be deemed unfair and discriminatory," it added. It further said that these companies will have to file a certificate along with a report of the statutory auditor to the RBI, confirming compliance of guidelines by September 30th of every year for the preceding fiscal. The decision comes against the backdrop of several complaints being flagged by domestic traders on heavy discounts being given by e-commerce players to consumers. According to the current policy, 100 per cent FDI is permitted in marketplace e-commerce activities. It is prohibited in inventory-based activities. Welcoming the move, Snapdeal CEO Kunal Bahl tweeted that "Marketplaces are meant for genuine, independent sellers, many of whom are MSMEs. These changes will enable a level playing field for all sellers, helping them leverage the reach of e-commerce". Amazon India spokesperson said: "We are evaluating the circular". A senior e-commerce industry executive of another company said that the move could adversely impact investments being made to bring new sellers on board. Traders body CAIT said if the steps are implemented in proper spirit, mal-practices and predatory pricing policy and deep discounting of e-commerce players will be a matter of past. The CAIT also demanded the introduction of an e-commerce policy and a regulator to monitor the sector.

Flipkart, Amazon sale may become history as govt tightens e-commerce norms

The Reserve Bank of India (RBI) will implement in full its directive that forces global payment companies to store data locally from this month, four sources told Reuters, a blow to the firms who had lobbied to dilute the measure.

The RBI in April said all payments data should within six months be stored only in the country for "unfettered supervisory access". The deadline for the companies to adhere is October 15.

The directive is part of a wider push by India to ask companies to store more of their data locally at a time when governments globally are enforcing more stringent rules to protect user data. &nbsp;

However, the global payments companies fear the new rules would increase their infrastructure costs, hit their global fraud detection analytic platforms and affect planned investments in the country at a time when more and more Indians are using digital modes of payments.&nbsp;

Firms such as Mastercard, Visa and American Express have in recent months met with Indian policymakers, including Finance Minister Arun Jaitley, to push for an extension of the RBI`s deadline.

They also repeatedly sought dilution of the RBI directive, requesting that they be allowed to store data both locally and at their offshore offices, a practice widely known as 'data mirroring'.

But in a meeting between RBI officials and US&nbsp;payment companies in Mumbai on Wednesday, central bank officials said the industry will need to store all their data only within the country, as per its April directive, and said data mirroring will not be allowed, four sources aware of the discussions said.

"They specifically said no mirroring, the meeting was bad (for the industry), it`s pretty clear," said one of the industry sources.

The RBI also conveyed in the meeting it was not willing to extend the deadline for compliance to the directive, the sources said.

The RBI did not immediately respond to a request for comment. Mastercard, Visa and American Express also did not respond.

Government sources have previously told Reuters that stringent data localisation measures were essential for gaining easier access to data during investigations.&nbsp;

Whatsapp has built a system to store its payment data locally, the company said on Tuesday. The Facebook-owned messenger had begun testing its payments service in India and is keen to deepen its reach.

It was easier for companies such as Whatsapp, which have a relatively smaller-scale payments platform in India, to comply with the central bank directive, but the bigger payment firms will need more time, one of the sources said.

"The bigger companies will have to change a lot of things such as setting up servers and replicating payment processing tools," the source said. 
Another source, who works at a multinational payment company, said moving and storing its data only in India would take at least 12-18 months.

The Reserve Bank of India (RBI) will implement in full its directive that forces global payment companies to store data locally from this month, four sources told Reuters, a blow to the firms who had lobbied to dilute the measure.

The Reserve Bank of India (RBI) will implement in full its directive that forces global payment companies to store data locally from this month, four sources told Reuters, a blow to the firms who had lobbied to dilute the measure. The RBI in April said all payments data should within six months be stored only in the country for "unfettered supervisory access". The deadline for the companies to adhere is October 15. The directive is part of a wider push by India to ask companies to store more of their data locally at a time when governments globally are enforcing more stringent rules to protect user data. However, the global payments companies fear the new rules would increase their infrastructure costs, hit their global fraud detection analytic platforms and affect planned investments in the country at a time when more and more Indians are using digital modes of payments. Firms such as Mastercard, Visa and American Express have in recent months met with Indian policymakers, including Finance Minister Arun Jaitley, to push for an extension of the RBI`s deadline. They also repeatedly sought dilution of the RBI directive, requesting that they be allowed to store data both locally and at their offshore offices, a practice widely known as 'data mirroring'. But in a meeting between RBI officials and US payment companies in Mumbai on Wednesday, central bank officials said the industry will need to store all their data only within the country, as per its April directive, and said data mirroring will not be allowed, four sources aware of the discussions said. "They specifically said no mirroring, the meeting was bad (for the industry), it`s pretty clear," said one of the industry sources. The RBI also conveyed in the meeting it was not willing to extend the deadline for compliance to the directive, the sources said. The RBI did not immediately respond to a request for comment. Mastercard, Visa and American Express also did not respond. Government sources have previously told Reuters that stringent data localisation measures were essential for gaining easier access to data during investigations. Whatsapp has built a system to store its payment data locally, the company said on Tuesday. The Facebook-owned messenger had begun testing its payments service in India and is keen to deepen its reach. It was easier for companies such as Whatsapp, which have a relatively smaller-scale payments platform in India, to comply with the central bank directive, but the bigger payment firms will need more time, one of the sources said. "The bigger companies will have to change a lot of things such as setting up servers and replicating payment processing tools," the source said. Another source, who works at a multinational payment company, said moving and storing its data only in India would take at least 12-18 months.

RBI sticking with plan to force payments firms to store data locally: Report

Amazon opens a new retail store in New York on Thursday selling a range of products from the online colossus that get top ratings from customers.

The brick-and-mortar outlet in New York's trendy Soho neighbourhood will sell consumer electronics, kitchen, home, toys, books and games, and "chose only the products that customers have rated 4 stars and above, or are top sellers, or are new and trending," Amazon said in a statement.

Amazon has previously opened physical stores that sell books and has had pop-up outlets in some locations, but Amazon 4-Star is a new concept that offers a variety of goods in different categories.

"We created Amazon 4-Star to be a place where customers can discover products they will love," a company statement said.

"Amazon 4-Star's selection is a direct reflection of our customers -- what they're buying and what they're loving."

Amazon, one of the world's most valuable companies whose growth has made founder Jeff Bezos the world's richest person, has been in recent years moving increasingly to physical stores.

It has opened more than a dozen Amazon Books stores that sell top-selling titles and some additional merchandise. And it has acquired the grocery chain Whole Foods, which has several hundred stores.

Amazon has also introduced a handful of concept Amazon Go grocery stores that operate without cashiers, with purchases automatically scanned and billed to customer accounts.

Amazon opens a new retail store in New York on Thursday selling a range of products from the online colossus that get top ratings from customers. The brick-and-mortar outlet in New York's trendy Soho neighbourhood will sell consumer electronics, kitchen, home, toys, books and games, and "chose only the products that customers have rated 4 stars and above, or are top sellers, or are new and trending," Amazon said in a statement.

Amazon opens a new retail store in New York on Thursday selling a range of products from the online colossus that get top ratings from customers. The brick-and-mortar outlet in New York's trendy Soho neighbourhood will sell consumer electronics, kitchen, home, toys, books and games, and "chose only the products that customers have rated 4 stars and above, or are top sellers, or are new and trending," Amazon said in a statement. Amazon has previously opened physical stores that sell books and has had pop-up outlets in some locations, but Amazon 4-Star is a new concept that offers a variety of goods in different categories. "We created Amazon 4-Star to be a place where customers can discover products they will love," a company statement said. "Amazon 4-Star's selection is a direct reflection of our customers -- what they're buying and what they're loving." Amazon, one of the world's most valuable companies whose growth has made founder Jeff Bezos the world's richest person, has been in recent years moving increasingly to physical stores. It has opened more than a dozen Amazon Books stores that sell top-selling titles and some additional merchandise. And it has acquired the grocery chain Whole Foods, which has several hundred stores. Amazon has also introduced a handful of concept Amazon Go grocery stores that operate without cashiers, with purchases automatically scanned and billed to customer accounts.

Amazon opens new '4-star' retail store in New York

Companies are offering 10-25 per cent increase in variable pay as incentive to retain and attract talents, especially in the IT, FMCG, e-commerce, BFSI and telecom sectors, according to experts.

"We see an increase ranging from 10-25 per cent during the last 2-3 years. Today for some companies, the variable component is nearly 25 per cent of the fixed salary for employees at junior-mid level," TeamLease Services Head of North Business Mayur Saraswat told PTI here.

This growth in variable component reflects 10-20 per cent on the gross salary, he added.

Companies in sectors like IT, Information Technology Enabled Services (ITeS), FMCG, e-commerce, Banking, Financial Services and Insurance (BFSI) and Telecom are increasing variable pay component as a proportion of employee salary to incentivise performance.

"Historically, companies were used to the concept of having fixed pay. But now, with markets getting matured and complex with competition, companies believe talent is one of the key factor for success. To attract and retain talent, one would need to have a culture of high performance as well as incentivising performance," Saraswat said.

Echoing a similar view, Michael Page India MD Nicolas Dumoulin said domestic companies are now increasingly including the variable pay component in employee's salary packages.

"Therefore, the size of the variable pay is larger when it comes to local companies, with an approximate of 20-30 per cent bonuses being offered," he added.

He said, MNCs have always offered this element to their employees across the globe, therefore, they continue to offer this but the extent of compensations have not drastically increased.

Dumoulin said, well-established companies in FMCG and banking, healthcare and life sciences, chemicals, building materials and sales driven roles have started introducing this aspect.

However, Dumoulin said, the variable pay component is not the most effective method to retain or attract talent as it is a one-off amount that employees get, especially for those in a support function role.

Whereas, for results-driven and executive roles, this benefit is a constructive retention tool as employees recognise that their variable pay component can be influenced by their performance, he added.

Apart from the variable pay component, professionals are eager to work with organisations that allow them to take on different roles in the corporation, offer international working opportunities and have flexible working hours, he pointed out.

Meanwhile, GlobalHunt Managing Director Sunil Goel said, variable pay comes as a supplement and opportunity to benefit the resources when company does well and wins lot of projects or business opportunities where employees becomes as direct or indirect stakeholders for good times.

"We have seen in most of the new-age businesses like startup's, technology, BFSI, retail, e-Commerce, chemical, even in FMCG sectors are following this trend but at the same time industries like real-estate and telecom, which is going through consolidation, phase have been able to keep their fix cost as low with not so high variable payout as per the business performance," he added.

Since the fixed component is not increasing more than 10-11 per cent, Goel said the variable pay-outs are reflecting or elevating the gross salary up to 30-40 per cent higher.

Companies in sectors like IT, Information Technology Enabled Services (ITeS), FMCG, e-commerce, Banking, Financial Services and Insurance (BFSI) and Telecom are increasing variable pay component as a proportion of employee salary to incentivise performance.

Companies are offering 10-25 per cent increase in variable pay as incentive to retain and attract talents, especially in the IT, FMCG, e-commerce, BFSI and telecom sectors, according to experts. "We see an increase ranging from 10-25 per cent during the last 2-3 years. Today for some companies, the variable component is nearly 25 per cent of the fixed salary for employees at junior-mid level," TeamLease Services Head of North Business Mayur Saraswat told PTI here. This growth in variable component reflects 10-20 per cent on the gross salary, he added. Companies in sectors like IT, Information Technology Enabled Services (ITeS), FMCG, e-commerce, Banking, Financial Services and Insurance (BFSI) and Telecom are increasing variable pay component as a proportion of employee salary to incentivise performance. "Historically, companies were used to the concept of having fixed pay. But now, with markets getting matured and complex with competition, companies believe talent is one of the key factor for success. To attract and retain talent, one would need to have a culture of high performance as well as incentivising performance," Saraswat said. Echoing a similar view, Michael Page India MD Nicolas Dumoulin said domestic companies are now increasingly including the variable pay component in employee's salary packages. "Therefore, the size of the variable pay is larger when it comes to local companies, with an approximate of 20-30 per cent bonuses being offered," he added. He said, MNCs have always offered this element to their employees across the globe, therefore, they continue to offer this but the extent of compensations have not drastically increased. Dumoulin said, well-established companies in FMCG and banking, healthcare and life sciences, chemicals, building materials and sales driven roles have started introducing this aspect. However, Dumoulin said, the variable pay component is not the most effective method to retain or attract talent as it is a one-off amount that employees get, especially for those in a support function role. Whereas, for results-driven and executive roles, this benefit is a constructive retention tool as employees recognise that their variable pay component can be influenced by their performance, he added. Apart from the variable pay component, professionals are eager to work with organisations that allow them to take on different roles in the corporation, offer international working opportunities and have flexible working hours, he pointed out. Meanwhile, GlobalHunt Managing Director Sunil Goel said, variable pay comes as a supplement and opportunity to benefit the resources when company does well and wins lot of projects or business opportunities where employees becomes as direct or indirect stakeholders for good times. "We have seen in most of the new-age businesses like startup's, technology, BFSI, retail, e-Commerce, chemical, even in FMCG sectors are following this trend but at the same time industries like real-estate and telecom, which is going through consolidation, phase have been able to keep their fix cost as low with not so high variable payout as per the business performance," he added. Since the fixed component is not increasing more than 10-11 per cent, Goel said the variable pay-outs are reflecting or elevating the gross salary up to 30-40 per cent higher.

Companies increasing variable pay to retain, attract talents: Experts

Walmart Inc, the world's biggest retailer, posted a rebound in its US&nbspe-commerce business on Thursday and beat profit and revenue expectations, lifting its shares in premarket trade.

Walmart's e-commerce sales grew 33 percent during the first quarter ended April 30, above the 23-percent growth in the previous three months. It said it is on track to increase US&nbspe-commerce sales by 40 percent for the full year.

The e-commerce rebound comes after a sharp slowdown during the crucial holiday quarter, which sent its shares down over 10 percent and wiped out $31 billion from its market capitalization. Investors worried Walmart would not be able to keep pace with rival Amazon.com Inc.

"Online grocery continued to accelerate and we also have new brands in e-commerce including the partnership with Lord and Taylor, so there are a lot of different things driving growth there," Chief Financial Officer Brett Biggs said in an interview. He said free two-day shipping boosted growth, and the Walmart.com site redesign helped late in the quarter.

International sales were up 4.5 percent at $28.3 billion on a constant currency basis, helped by an early Easter, Biggs said.

The company is in the process of fixing its international business portfolio and recently said it will acquire a 77-percent stake in Indian e-commerce firm Flipkart for $16 billion, its largest deal ever, to compete with Amazon.com Inc in an important growth market. It also plans to sell a majority stake in its UK grocery chain Asda Group Ltd to J Sainsbury PLC.

Walmart also recently reached agreements to sell its banking operations in Walmart Canada and Walmart Chile, it said on Thursday.

Excluding special items, adjusted earnings were $1.14 per share. The average analyst estimate was $1.12 per share, according to Thomson Reuters.

Sales at US&nbspstores open at least a year rose 2.1 percent excluding fuel, in line with analyst forecasts, according to Consensus Metrix. Walmart has recorded nearly four straight years of US&nbspgrowth, unmatched by any other retailer.

The comparable sales increase was driven by a jump in the price of items sold and by e-commerce. Customer traffic was 0.8-percent higher during the quarter, slower than the 1.5 percent growth during the same period a year ago. A delayed spring hurt demand in weather-related categories and led customers to consolidate trips.

Biggs said demand in those categories rebounded this month.

Total revenue increased 4.4 percent to $122.7 billion, beating analysts' estimates of $120.5 billion.

Walmart's shares were up 1.98 percent at $87.18 in premarket trade. The company's stock has fallen around 20 percent since reaching an all-time high of $109.98 in late January.

Walmart's e-commerce sales grew 33 percent during the first quarter ended April 30, above the 23-percent growth in the previous three months

Walmart Inc, the world's biggest retailer, posted a rebound in its US&nbspe-commerce business on Thursday and beat profit and revenue expectations, lifting its shares in premarket trade. Walmart's e-commerce sales grew 33 percent during the first quarter ended April 30, above the 23-percent growth in the previous three months. It said it is on track to increase US&nbspe-commerce sales by 40 percent for the full year. The e-commerce rebound comes after a sharp slowdown during the crucial holiday quarter, which sent its shares down over 10 percent and wiped out $31 billion from its market capitalization. Investors worried Walmart would not be able to keep pace with rival Amazon.com Inc. "Online grocery continued to accelerate and we also have new brands in e-commerce including the partnership with Lord and Taylor, so there are a lot of different things driving growth there," Chief Financial Officer Brett Biggs said in an interview. He said free two-day shipping boosted growth, and the Walmart.com site redesign helped late in the quarter. International sales were up 4.5 percent at $28.3 billion on a constant currency basis, helped by an early Easter, Biggs said. The company is in the process of fixing its international business portfolio and recently said it will acquire a 77-percent stake in Indian e-commerce firm Flipkart for $16 billion, its largest deal ever, to compete with Amazon.com Inc in an important growth market. It also plans to sell a majority stake in its UK grocery chain Asda Group Ltd to J Sainsbury PLC. Walmart also recently reached agreements to sell its banking operations in Walmart Canada and Walmart Chile, it said on Thursday. Excluding special items, adjusted earnings were $1.14 per share. The average analyst estimate was $1.12 per share, according to Thomson Reuters. Sales at US&nbspstores open at least a year rose 2.1 percent excluding fuel, in line with analyst forecasts, according to Consensus Metrix. Walmart has recorded nearly four straight years of US&nbspgrowth, unmatched by any other retailer. The comparable sales increase was driven by a jump in the price of items sold and by e-commerce. Customer traffic was 0.8-percent higher during the quarter, slower than the 1.5 percent growth during the same period a year ago. A delayed spring hurt demand in weather-related categories and led customers to consolidate trips. Biggs said demand in those categories rebounded this month. Total revenue increased 4.4 percent to $122.7 billion, beating analysts' estimates of $120.5 billion. Walmart's shares were up 1.98 percent at $87.18 in premarket trade. The company's stock has fallen around 20 percent since reaching an all-time high of $109.98 in late January.

Walmart's US e-commerce growth rebounds, shares rise

Flipkart co-founder Sachin Bansal, who is exiting the Bengaluru-based company post the Walmart deal, plans to catch up on gaming and brush up his coding skills as he takes time off to finish few pending personal projects.

US retailer Walmart Inc yesterday acquired 77 per cent stake in Flipkart for about USD 16 billion in its biggest acquisition till date. The deal values the 11-year old Indian e-commerce firm at USD 20.8 billion.

Sachin Bansal, who had co-founded Flipkart with Binny Bansal in 2007, would exit the company after the deal, while Binny will stay on.

Also read: <a href="http://www.wionews.com/india-news/flipkarts-1st-employee-was-hired-at-rs-8000-a-month-today-hes-a-multi-millionaire-135789">Flipkart's 1st employee was hired at Rs 8,000 a month. Today, he's a multi-millionaire</a>

Sachin and Binny, who are not related and formerly worked for Amazon.Com Inc, like their US rival began by selling books when they founded Flipkart. Flipkart sealed the world's largest e-commerce deal yesterday with Walmart, cementing India's place in the global e-tailing league.

"I'll be taking some long time off and focus on finishing a few personal projects which I haven't been able to find time for. Will catch up on gaming (and see what kids are playing these days) and brush up on my coding skills," Bansal said in a Facebook post.

The emotional farewell post went on to say: "Sadly my work here is done and after 10 years, it's time to hand over the baton and move on from Flipkart".

Sachin Bansal said he will be "cheering from the outside" and urged Flipkart team to continue with the momentum.

"...But I'll be watching and cheering from the outside ? Flipsters, you better continue to do a good job!" he said.

Recalling the cherished relationships and "amazing experiences", Bansal said that Flipkart had truly upheld customer centricity and that he got to work with the best people.

"We took on some of the biggest challenges and solved many complex problems for india," Bansal reminisced.&nbsp;

Sachin Bansal, who co-founded Flipkart with Binny Bansal in 2007, is leaving the company after the Walmart deal. He said, in an emotional Facebook post, that he plans to catch up on gaming and brush up his coding skills

Flipkart co-founder Sachin Bansal, who is exiting the Bengaluru-based company post the Walmart deal, plans to catch up on gaming and brush up his coding skills as he takes time off to finish few pending personal projects. US retailer Walmart Inc yesterday acquired 77 per cent stake in Flipkart for about USD 16 billion in its biggest acquisition till date. The deal values the 11-year old Indian e-commerce firm at USD 20.8 billion. Sachin Bansal, who had co-founded Flipkart with Binny Bansal in 2007, would exit the company after the deal, while Binny will stay on. Also read: Flipkart's 1st employee was hired at Rs 8,000 a month. Today, he's a multi-millionaire Sachin and Binny, who are not related and formerly worked for Amazon.Com Inc, like their US rival began by selling books when they founded Flipkart. Flipkart sealed the world's largest e-commerce deal yesterday with Walmart, cementing India's place in the global e-tailing league. "I'll be taking some long time off and focus on finishing a few personal projects which I haven't been able to find time for. Will catch up on gaming (and see what kids are playing these days) and brush up on my coding skills," Bansal said in a Facebook post. The emotional farewell post went on to say: "Sadly my work here is done and after 10 years, it's time to hand over the baton and move on from Flipkart". Sachin Bansal said he will be "cheering from the outside" and urged Flipkart team to continue with the momentum. "...But I'll be watching and cheering from the outside ? Flipsters, you better continue to do a good job!" he said. Recalling the cherished relationships and "amazing experiences", Bansal said that Flipkart had truly upheld customer centricity and that he got to work with the best people. "We took on some of the biggest challenges and solved many complex problems for india," Bansal reminisced.

'Sadly my work here is done,' says Sachin Bansal. Leaves Flipkart

Online shopping has made deep inroads in India with millions of Indians logging on to e-commerce websites to buy things online - from gadgets to apparels to food, grocery and healthcare products.

Sometimes shoppers are sure of the product quality, but there are times when people are not confident of goods they are planning to buy online. So what do they do in such cases? They look at rating of a particular product to check how many have rated it 5-star, read comments to find out how happy existing owners of the product are.

Such reviews help them in making our choice, and are considered safe. But are they?

An investigative report done by the BBC has revealed that a lot of five-star ratings and positive reviews are traded online. Not just global websites, it's been discovered that <a href="http://www.wionews.com/videos/know-how-the-black-market-of-fake-reviews-work-134563">this practice is common</a> on Indian e-commerce websites as well.

So how does this work? It's a simple reward-driven business model where both businesses and customers are gaining. A customer is asked to make good ratings and write positive reviews so that businesses can get more customers. The buyers, on the other hand, are also benefitting they are rewarded with free goods and full refund in exchange of positive reviews.

Some people or merchants directly contact prospective clients to write fake reviews through emails, guaranteeing a return. Sending emails is just one way. There are now Facebook groups as well for the same where customers are encouraged to buy certain products and post positive reviews in exchange for monetary and non-monetary rewards.

WION approached Amazon, Ebay and Flipkart to understand the measures they are taking to curb this black market of fake online reviews. Amazon replied saying, "Acknowledging your email. We have shared internally and the relevant team member will connect with you." However, there has been no communication from the e-retailer after that. Flipkart and Ebay, on the other hand, have not responded to the mail yet.

While fake reviews are being traded openly on the Internet, sadly it's not easy to track people making these offers and in some cases, it's not even possible to track businesses the reviews are being sought for.

The business of fake reviews is attracting a lot of customers and giving them an easy way to make money, so much so that some people have made it their full-time profession.

While a lot of online companies are aggressively working towards cracking down on bogus reviews, the fact remains the black market of online reviews is only increasing day by day.

Some people or merchants directly contact prospective clients to write fake reviews through emails, guaranteeing a return.

Online shopping has made deep inroads in India with millions of Indians logging on to e-commerce websites to buy things online - from gadgets to apparels to food, grocery and healthcare products. Sometimes shoppers are sure of the product quality, but there are times when people are not confident of goods they are planning to buy online. So what do they do in such cases? They look at rating of a particular product to check how many have rated it 5-star, read comments to find out how happy existing owners of the product are. Such reviews help them in making our choice, and are considered safe. But are they? An investigative report done by the BBC has revealed that a lot of five-star ratings and positive reviews are traded online. Not just global websites, it's been discovered that this practice is common on Indian e-commerce websites as well. So how does this work? It's a simple reward-driven business model where both businesses and customers are gaining. A customer is asked to make good ratings and write positive reviews so that businesses can get more customers. The buyers, on the other hand, are also benefitting they are rewarded with free goods and full refund in exchange of positive reviews. Some people or merchants directly contact prospective clients to write fake reviews through emails, guaranteeing a return. Sending emails is just one way. There are now Facebook groups as well for the same where customers are encouraged to buy certain products and post positive reviews in exchange for monetary and non-monetary rewards. WION approached Amazon, Ebay and Flipkart to understand the measures they are taking to curb this black market of fake online reviews. Amazon replied saying, "Acknowledging your email. We have shared internally and the relevant team member will connect with you." However, there has been no communication from the e-retailer after that. Flipkart and Ebay, on the other hand, have not responded to the mail yet. While fake reviews are being traded openly on the Internet, sadly it's not easy to track people making these offers and in some cases, it's not even possible to track businesses the reviews are being sought for. The business of fake reviews is attracting a lot of customers and giving them an easy way to make money, so much so that some people have made it their full-time profession. While a lot of online companies are aggressively working towards cracking down on bogus reviews, the fact remains the black market of online reviews is only increasing day by day.

Beware, online shoppers! E-commerce websites flooded with fake reviews

Amazon.com Inc has made a formal offer to buy a 60 per cent stake in Indian online retailer Flipkart, CNBC-TV18 reported on Wednesday, threatening to complicate Walmart Inc's bid to buy a majority stake in the Indian e-commerce player.

Walmart was likely to reach a deal to buy a majority stake in Flipkart,&nbsp;Amazon's biggest competitor in India, by the end of June for US $10 billion to US&nbsp;$12 billion.&nbsp;As part of the proposal, Amazon is seeking a non-compete agreement from Flipkart's founders, reports said.&nbsp;

The deal would be the US&nbsp;retail giant's biggest acquisition of an online business and would kick off a battle with&nbsp;Amazon&nbsp;in an Indian e-commerce market that analysts forecast will be worth US $200 billion a year within a decade.

CNBC-TV18 reported&nbsp;that&nbsp;Amazon&nbsp;had offered Flipkart a breakup fee of US $2 billion to convince it to discuss an offer which analysts say would bring with it substantial antitrust challenges, as Flipkart and&nbsp;Amazon&nbsp;dominate the online shopping space in Asia's third-largest economy.

Two sources close to the matter, asking not to be named, confirmed to Reuters that&nbsp;Amazon&nbsp;was interested in buying Flipkart, but declined to give further details.

One of the sources said that Flipkart had vetoed an approach from&nbsp;Amazon&nbsp;for a 51 to 55 per cent in the company two years ago, judging its offered price as far too low at the time.

"Now with Walmart in the mix things are different," the source said. "To the best of my knowledge no decision has been made yet. There is no deadline per se."

CNBC-TV18, citing unnamed sources, said&nbsp;Amazon's new bid was likely to be on a par with Walmart's, but that Flipkart's investors and founders continue to favor the deal with Walmart, with founder Sachin Bansal overseeing final negotiations.

US retail giant Walmart is widely expected to make an offer to buy a majority stake in Flipkart, with the deal likely to be signed as early as next week.&nbsp;The deal will most likely involve Walmart buying a controlling stake of around 55 per cent in the Bengaluru-based company.

Walmart has been on an acquisition spree to strengthen its online presence after it bought Amazon's competitor Jet.com for US $3.3 billion in 2016.

Representatives at Amazon, Flipkart and Walmart were not immediately available for comment.

(With inputs from Reuters)

Walmart was likely to reach a deal to buy a majority stake in Flipkart, Amazon's biggest competitor in India, by the end of June for $10 billion to $12 billion

Amazon.com Inc has made a formal offer to buy a 60 per cent stake in Indian online retailer Flipkart, CNBC-TV18 reported on Wednesday, threatening to complicate Walmart Inc's bid to buy a majority stake in the Indian e-commerce player. Walmart was likely to reach a deal to buy a majority stake in Flipkart, Amazon's biggest competitor in India, by the end of June for US $10 billion to US $12 billion. As part of the proposal, Amazon is seeking a non-compete agreement from Flipkart's founders, reports said. The deal would be the US retail giant's biggest acquisition of an online business and would kick off a battle with Amazon in an Indian e-commerce market that analysts forecast will be worth US $200 billion a year within a decade. CNBC-TV18 reported that Amazon had offered Flipkart a breakup fee of US $2 billion to convince it to discuss an offer which analysts say would bring with it substantial antitrust challenges, as Flipkart and Amazon dominate the online shopping space in Asia's third-largest economy. Two sources close to the matter, asking not to be named, confirmed to Reuters that Amazon was interested in buying Flipkart, but declined to give further details. One of the sources said that Flipkart had vetoed an approach from Amazon for a 51 to 55 per cent in the company two years ago, judging its offered price as far too low at the time. "Now with Walmart in the mix things are different," the source said. "To the best of my knowledge no decision has been made yet. There is no deadline per se." CNBC-TV18, citing unnamed sources, said Amazon's new bid was likely to be on a par with Walmart's, but that Flipkart's investors and founders continue to favor the deal with Walmart, with founder Sachin Bansal overseeing final negotiations. US retail giant Walmart is widely expected to make an offer to buy a majority stake in Flipkart, with the deal likely to be signed as early as next week. The deal will most likely involve Walmart buying a controlling stake of around 55 per cent in the Bengaluru-based company. Walmart has been on an acquisition spree to strengthen its online presence after it bought Amazon's competitor Jet.com for US $3.3 billion in 2016. Representatives at Amazon, Flipkart and Walmart were not immediately available for comment. (With inputs from Reuters)

Amazon offers to buy 60 per cent stake in Flipkart

E-commerce firm Snapdeal saw its losses mounting to Rs 4,647 crore for the fiscal ending March 2017, impacted by a provision for "impairment of goodwill" of Rs 1,797 crore.

According to regulatory filing to the corporate affairs ministry by Jasper Infotech, which runs Snapdeal, had registered a net loss of Rs 3,340 crore in 2015-16.

The company's total income also declined by 12.6 per cent to Rs 1,291.3 crore in FY2017 from Rs 1,478.2 crore in the previous year.

When contacted, Snapdeal spokesperson said the financial statement for the year 2016-17 "reflects the first stage of Snapdeal's focus on unit economics and business efficiencies".

"Key highlights in this regard are the reduction in fulfilment cost by more than 20 per cent (as a percentage of operating revenue) and reduction in operational losses by nearly 25 per cent (excluding non-recurring cost on account of impairment of assets)," the spokesperson said.

He added that the company continues to make "rapid progress in driving profitable growth, which will be reflected in the results for the financial year 2017-18".

Snapdeal has seen its business being impacted severely by the intense competition in the e-commerce segment. While players, including the likes of Amazon and Flipkart, have pumped in billions of dollars in investments, they continue to operate in losses. Analysts are of the view that it will be a couple of years before these players can hit profitability.

Last year, Snapdeal dumped the USD 950-million takeover offer from Flipkart with Snapdeal founders Kunal Bahl and Rohit Bansal saying the company will pursue a fresh strategy in the Indian market.

Last year, Snapdeal sold its payment services unit, Freecharge to Axis Bank for Rs 385 crore, almost 90 per cent lower than what it had paid for the firm in 2015.

In January this year, its logistics arm -- Vulcan Express -- was acquired by Kishore Biyani's Future Supply Chain Solutions in an all-cash deal valued at Rs 35 crore.

Snapdeal has also significantly reduced its headcount to rein in costs.

According to regulatory filing to the corporate affairs ministry by Jasper Infotech, which runs Snapdeal, had registered a net loss of Rs 3,340 crore in 2015-16

E-commerce firm Snapdeal saw its losses mounting to Rs 4,647 crore for the fiscal ending March 2017, impacted by a provision for "impairment of goodwill" of Rs 1,797 crore. According to regulatory filing to the corporate affairs ministry by Jasper Infotech, which runs Snapdeal, had registered a net loss of Rs 3,340 crore in 2015-16. The company's total income also declined by 12.6 per cent to Rs 1,291.3 crore in FY2017 from Rs 1,478.2 crore in the previous year. When contacted, Snapdeal spokesperson said the financial statement for the year 2016-17 "reflects the first stage of Snapdeal's focus on unit economics and business efficiencies". "Key highlights in this regard are the reduction in fulfilment cost by more than 20 per cent (as a percentage of operating revenue) and reduction in operational losses by nearly 25 per cent (excluding non-recurring cost on account of impairment of assets)," the spokesperson said. He added that the company continues to make "rapid progress in driving profitable growth, which will be reflected in the results for the financial year 2017-18". Snapdeal has seen its business being impacted severely by the intense competition in the e-commerce segment. While players, including the likes of Amazon and Flipkart, have pumped in billions of dollars in investments, they continue to operate in losses. Analysts are of the view that it will be a couple of years before these players can hit profitability. Last year, Snapdeal dumped the USD 950-million takeover offer from Flipkart with Snapdeal founders Kunal Bahl and Rohit Bansal saying the company will pursue a fresh strategy in the Indian market. Last year, Snapdeal sold its payment services unit, Freecharge to Axis Bank for Rs 385 crore, almost 90 per cent lower than what it had paid for the firm in 2015. In January this year, its logistics arm -- Vulcan Express -- was acquired by Kishore Biyani's Future Supply Chain Solutions in an all-cash deal valued at Rs 35 crore. Snapdeal has also significantly reduced its headcount to rein in costs.

Snapdeal posts Rs 4,647 crore net loss in 2016-17

Walmart Inc could seal a deal to buy a more than 51% stake in Indian online marketplace Flipkart as early as next week, two sources familiar with the matter said on Friday.&nbsp;

The US retail giant has been in talks with Flipkart for months to acquire controlling stake as it looks to take on rival Amazon.com Inc head-on in India, a market where e-commerce is tipped to grow to $200 billion in a decade.&nbsp;

SoftBank Group, which owns about a fifth of Flipkart through its Vision Fund, was unwilling to sell a part of its stake as Walmart was offering to buy existing shares at a valuation of $12 billion, a price the Japanese tech investor considered low, it was reported.&nbsp;

But that stalemate between SoftBank and Walmart has ended, one of the sources said on Friday. It was not immediately clear though, whether SoftBank had agreed to sell some shares in Flipkart.&nbsp;

Walmart's purchase of new equity is likely to value Flipkart at least $18 billion.&nbsp;

It was earlier reported that Walmart completed due diligence on Flipkart and had made a proposal to buy 51% or more for between $10 billion to $12billion.&nbsp;

A third source said a deal was close, but things could still drag into the first week of May.&nbsp;

Some of Flipkart's main investors - US hedge fund Tiger Global Management, South African tech investor Naspers and venture capital firm Accel - are likely to take a full exit as Walmart purchases their shares, as per sources.&nbsp;

Sachin and Binny Bansal, former Amazon employees who founded Flipkart in 2007 in India's tech hub of Bengaluru, are also likely to part sell their stake as part of the deal, one of the sources said.&nbsp;

All sources declined to be named as the talks are not public. Flipkart, SoftBank did not immediately respond to requests for comment, while a representative for Walmart in India declined to comment.

Walmart has been in talks with Flipkart for months to acquire a controlling stake in the firm as it looks to take on rival Amazon.com Inc head-on in India.

Walmart Inc could seal a deal to buy a more than 51% stake in Indian online marketplace Flipkart as early as next week, two sources familiar with the matter said on Friday. The US retail giant has been in talks with Flipkart for months to acquire controlling stake as it looks to take on rival Amazon.com Inc head-on in India, a market where e-commerce is tipped to grow to $200 billion in a decade. SoftBank Group, which owns about a fifth of Flipkart through its Vision Fund, was unwilling to sell a part of its stake as Walmart was offering to buy existing shares at a valuation of $12 billion, a price the Japanese tech investor considered low, it was reported. But that stalemate between SoftBank and Walmart has ended, one of the sources said on Friday. It was not immediately clear though, whether SoftBank had agreed to sell some shares in Flipkart. Walmart's purchase of new equity is likely to value Flipkart at least $18 billion. It was earlier reported that Walmart completed due diligence on Flipkart and had made a proposal to buy 51% or more for between $10 billion to $12billion. A third source said a deal was close, but things could still drag into the first week of May. Some of Flipkart's main investors - US hedge fund Tiger Global Management, South African tech investor Naspers and venture capital firm Accel - are likely to take a full exit as Walmart purchases their shares, as per sources. Sachin and Binny Bansal, former Amazon employees who founded Flipkart in 2007 in India's tech hub of Bengaluru, are also likely to part sell their stake as part of the deal, one of the sources said. All sources declined to be named as the talks are not public. Flipkart, SoftBank did not immediately respond to requests for comment, while a representative for Walmart in India declined to comment.

Walmart could buy controlling stake in Flipkart by next week

Japan's Softbank group and Chinese e-commerce giant are now investing Rs 3,000 crore in Paytm Mall, as per documents filed with the Ministry of Corporate Affairs (MCA).&nbsp;

India’s Paytm E-Commerce Pvt. Ltd. in this funding round will value the online retailer at roughly Rs 12,300 crore or US$1.9 billion.&nbsp;

SoftBank Group is investing US$400 million and Alibaba, an existing investor in Paytm E-Commerce, is also putting in US$45 million in the round, the filing showed.

The funding is expected to come in four tranches, as per the MCA filings. Currently, Alibaba along with Alipay holds 57% stake in Paytm Mall. However, after the fourth tranche of financing concludes, SoftBank Vision Fund will hold 21% and Alibaba (with Alipay) will hold around 46% stake in the e-commerce company.&nbsp;

SoftBank, which is among major investors in India’s fast-growing e-commerce sector and already owns a stake in Paytm’s parent, confirmed investing in Paytm Mall, the brand name under which Paytm E-Commerce operates an online market place.

“We believe Paytm Mall’s offline-to-online operating model, combined with the strength of the Paytm ecosystem, is uniquely positioned to enable India’s 15 million offline retail shops to participate in India’s e-commerce boom,” SoftBank said in a statement on Monday.

In a separate statement, Amit Sinha, chief operating officer of Paytm Mall said the company would deploy the latest investment from SoftBank and Alibaba to beef up its technology and build superior logistics among other things.

SoftBank’s new interest in e-commerce space comes after the Japanese multinational conglomerate led a funding round in India’s largest e-commerce player Flipkart in 2017.&nbsp;

However, SoftBank is expected to dilute its shareholding in Flipkart with talks of Walmart making an investment in the online retailer, making the Paytm Mall investment a way to diversify its bets and compete against Amazon India.&nbsp; 
&nbsp;

India’s Paytm E-Commerce Pvt. Ltd. in this funding round will value the online retailer at roughly Rs 12,300 crore or $1.9 billion

Japan's Softbank group and Chinese e-commerce giant are now investing Rs 3,000 crore in Paytm Mall, as per documents filed with the Ministry of Corporate Affairs (MCA). India’s Paytm E-Commerce Pvt. Ltd. in this funding round will value the online retailer at roughly Rs 12,300 crore or US$1.9 billion. SoftBank Group is investing US$400 million and Alibaba, an existing investor in Paytm E-Commerce, is also putting in US$45 million in the round, the filing showed. The funding is expected to come in four tranches, as per the MCA filings. Currently, Alibaba along with Alipay holds 57% stake in Paytm Mall. However, after the fourth tranche of financing concludes, SoftBank Vision Fund will hold 21% and Alibaba (with Alipay) will hold around 46% stake in the e-commerce company. SoftBank, which is among major investors in India’s fast-growing e-commerce sector and already owns a stake in Paytm’s parent, confirmed investing in Paytm Mall, the brand name under which Paytm E-Commerce operates an online market place. “We believe Paytm Mall’s offline-to-online operating model, combined with the strength of the Paytm ecosystem, is uniquely positioned to enable India’s 15 million offline retail shops to participate in India’s e-commerce boom,” SoftBank said in a statement on Monday. In a separate statement, Amit Sinha, chief operating officer of Paytm Mall said the company would deploy the latest investment from SoftBank and Alibaba to beef up its technology and build superior logistics among other things. SoftBank’s new interest in e-commerce space comes after the Japanese multinational conglomerate led a funding round in India’s largest e-commerce player Flipkart in 2017. However, SoftBank is expected to dilute its shareholding in Flipkart with talks of Walmart making an investment in the online retailer, making the Paytm Mall investment a way to diversify its bets and compete against Amazon India.

SoftBank, Alibaba to invest $445 million in Paytm

Amid the ongoing Facebook data breach scandal, United Nations on Thursday raised concern over the privacy issue and said that most counties are ill-prepared for the digital economy.

Also read: <a href="http://www.wionews.com/india-news/cambridge-analyticas-parent-company-involved-in-honor-killing-cases-in-india-reports-127122">Cambridge Analytica's parent company involved in '</a><a href="http://www.wionews.com/india-news/cambridge-analyticas-parent-company-involved-in-honor-killing-cases-in-india-reports-127122">honor</a><a href="http://www.wionews.com/india-news/cambridge-analyticas-parent-company-involved-in-honor-killing-cases-in-india-reports-127122"> killing' cases in India: Reports</a>

United Nations Conference on Trade and Development -- main agency dealing with the economics of globalisation -- Secretary-General Mukhisa Kituyi said: "The current debate about Facebook and data privacy vividly illustrates that most countries are ill-prepared for the digital economy.”

Also read: <a href="http://www.wionews.com/world/colombia-blocks-app-it-says-possibly-linked-to-cambridge-analytica-126870">Colombia blocks app it says possibly linked to Cambridge Analytica</a>

"This is more worrying given that about 90%&nbspof new Internet users over the last five years live in developing countries about half of which currently lack legislation to protect their privacy," he added.

UNCTAD further said, "the internet user growth is booming and with more people ever purchasing goods and services online, protecting their privacy must be a top priority."

"The digital economy is evolving fast. Between 2012 and 2017, the number of monthly Facebook users surged from 1 billion to 2.2 billion – with the fastest growth happening in developing countries."

The economic agency further mentioned about global e-commerce reaching almost $26 trillion in 2016.

Also read: <a href="http://www.wionews.com/world/chris-wylie-left-in-2014-has-no-direct-knowledge-of-companys-practices-cambridge-analytica-126812">Chris Wylie left in 2014, has no direct knowledge of company's practices: Cambridge Analytica</a>

The United States said to remain the largest market by far, with combined e-commerce sales of some $7.6 trillion, with Japan ranking at second.

The privacy concerns were raised after the reports of UK based data analysis company, Cambridge Analytica assisting in Donald Trump during the 2016 presidential elections came in the light.

The company is facing government search in the London office by US authorities for obtainning Facebook users' data with illegal measures.

Kituyi’s call for increasing security coincides with the agency’s E-Commerce Week in Geneva next month.&nbsp

It is the leading forum for governments, the private sector, development banks, academia and the civil society to discuss development opportunities and challenges before the evolving digital economy.

(With inputs from PTI)

Amid the ongoing Facebook data breach scandal, United Nations on Thursday raised concern over the privacy issue and said that most counties are ill-prepared for the digital economy

Amid the ongoing Facebook data breach scandal, United Nations on Thursday raised concern over the privacy issue and said that most counties are ill-prepared for the digital economy. Also read: Cambridge Analytica's parent company involved in 'honor killing' cases in India: Reports United Nations Conference on Trade and Development -- main agency dealing with the economics of globalisation -- Secretary-General Mukhisa Kituyi said: "The current debate about Facebook and data privacy vividly illustrates that most countries are ill-prepared for the digital economy.” Also read: Colombia blocks app it says possibly linked to Cambridge Analytica "This is more worrying given that about 90%&nbspof new Internet users over the last five years live in developing countries about half of which currently lack legislation to protect their privacy," he added. UNCTAD further said, "the internet user growth is booming and with more people ever purchasing goods and services online, protecting their privacy must be a top priority." "The digital economy is evolving fast. Between 2012 and 2017, the number of monthly Facebook users surged from 1 billion to 2.2 billion – with the fastest growth happening in developing countries." The economic agency further mentioned about global e-commerce reaching almost $26 trillion in 2016. Also read: Chris Wylie left in 2014, has no direct knowledge of company's practices: Cambridge Analytica The United States said to remain the largest market by far, with combined e-commerce sales of some $7.6 trillion, with Japan ranking at second. The privacy concerns were raised after the reports of UK based data analysis company, Cambridge Analytica assisting in Donald Trump during the 2016 presidential elections came in the light. The company is facing government search in the London office by US authorities for obtainning Facebook users' data with illegal measures. Kituyi’s call for increasing security coincides with the agency’s E-Commerce Week in Geneva next month. It is the leading forum for governments, the private sector, development banks, academia and the civil society to discuss development opportunities and challenges before the evolving digital economy. (With inputs from PTI)

Most counties are ill-prepared for the digital economy: UN

E-commerce major Amazon.In today said it has crossed the 3-lakh seller base in less than five years of the company&rsquo;s operations in India. Of this, one lakh new merchants were on-boarded in seven months.

Amazon, which is locked in an intense battle with homegrown rival Flipkart, has been aggressively ramping up its operations in the country. It has pumped in billions of dollars to strengthen its seller and customer base as well as towards building infrastructure.

Amazon India Director and GM, Seller Services Gopal Pillai told PTI that the &quot;steep increase&quot; in the seller base was attributable to various India-first innovations that have encouraged seller participation across the country, especially from tier II and III cities.

In the last one year, Amazon.in has expanded its network of third-party affiliates and service providers to ensure that sellers from non-metros and smaller towns get easy access and required support to start and manage their online business, he added.

Besides, the company has tied-up with various government bodies to empower local artisans, weavers and craftsmen across the country to embrace online selling and expand their business.

Amazon has always believed in working seller backwards and have been constantly innovating to address challenges that are unique to Indian sellers, Pillai said.

&quot;Through India-first innovations like Easy Ship and Seller Flex, along with our gold standard offering- FBA, to building online capabilities through SPN and growing the ecosystem along, we have been laser focused in our vision of transforming the way India buys and sells,&quot; he said.

In a recent investor call, Amazon Senior VP and CFO Brian Olsavsky had said India continues to be a &quot;good story&quot; for the US e-tailing giant even as its losses from its international operations widened to USD 919 million for the December quarter.

Amazon has pumped in billions of dollars into its Indian operations. One of its India units, Amazon Seller Services, alone has received over Rs 8,000 crore (about USD 1.28 billion) during financial year 2017-18 from the US parent, as per documents filed with the India&#39;s corporate affairs ministry.

Amazon founder Jeff Bezos has committed investments of USD 5 billion for the Indian market. Investments have also been made in other Amazon entities in India, including Amazon Pay and its wholesale business here.&nbsp;

Amazon has always believed in working seller backwards and have been constantly innovating to address challenges that are unique to Indian sellers, Pillai said

E-commerce major Amazon.In today said it has crossed the 3-lakh seller base in less than five years of the company’s operations in India. Of this, one lakh new merchants were on-boarded in seven months. Amazon, which is locked in an intense battle with homegrown rival Flipkart, has been aggressively ramping up its operations in the country. It has pumped in billions of dollars to strengthen its seller and customer base as well as towards building infrastructure. Amazon India Director and GM, Seller Services Gopal Pillai told PTI that the "steep increase" in the seller base was attributable to various India-first innovations that have encouraged seller participation across the country, especially from tier II and III cities. In the last one year, Amazon.in has expanded its network of third-party affiliates and service providers to ensure that sellers from non-metros and smaller towns get easy access and required support to start and manage their online business, he added. Besides, the company has tied-up with various government bodies to empower local artisans, weavers and craftsmen across the country to embrace online selling and expand their business. Amazon has always believed in working seller backwards and have been constantly innovating to address challenges that are unique to Indian sellers, Pillai said. "Through India-first innovations like Easy Ship and Seller Flex, along with our gold standard offering- FBA, to building online capabilities through SPN and growing the ecosystem along, we have been laser focused in our vision of transforming the way India buys and sells," he said. In a recent investor call, Amazon Senior VP and CFO Brian Olsavsky had said India continues to be a "good story" for the US e-tailing giant even as its losses from its international operations widened to USD 919 million for the December quarter. Amazon has pumped in billions of dollars into its Indian operations. One of its India units, Amazon Seller Services, alone has received over Rs 8,000 crore (about USD 1.28 billion) during financial year 2017-18 from the US parent, as per documents filed with the India's corporate affairs ministry. Amazon founder Jeff Bezos has committed investments of USD 5 billion for the Indian market. Investments have also been made in other Amazon entities in India, including Amazon Pay and its wholesale business here.

Amazon India crosses 3-lakh sellers mark on its marketplace

US retailer Wal-Mart Stores Inc is in advanced talks to buy a minority stake in Indian e-commerce firm Flipkart,&nbsp;financial daily the Economic Times reported on Tuesday.

Walmart could buy a 15 percent to 20 percent stake in Amazon.com Inc`s main competitor in India, the newspaper said, citing two anonymous sources.&nbsp;

A deal could be finalised as early as March and may involve primary and secondary sales by longstanding Flipkart investors, the paper added.

&quot;We don&#39;t comment on rumours and speculation,&quot; Walmart spokesman Randy Hargrove told Reuters via email.

Bengaluru-based Flipkart was not immediately available for comment outside regular business hours.

The news comes nearly two years after Reuters reported that Walmart was looking to invest between $750 million and $1 billion in Flipkart.

A deal could be finalised as early as March and may involve primary and secondary sales by longstanding Flipkart investors

US retailer Wal-Mart Stores Inc is in advanced talks to buy a minority stake in Indian e-commerce firm Flipkart, financial daily the Economic Times reported on Tuesday. Walmart could buy a 15 percent to 20 percent stake in Amazon.com Inc`s main competitor in India, the newspaper said, citing two anonymous sources. A deal could be finalised as early as March and may involve primary and secondary sales by longstanding Flipkart investors, the paper added. "We don't comment on rumours and speculation," Walmart spokesman Randy Hargrove told Reuters via email. Bengaluru-based Flipkart was not immediately available for comment outside regular business hours. The news comes nearly two years after Reuters reported that Walmart was looking to invest between $750 million and $1 billion in Flipkart.

Walmart in talks to buy a significant minority stake in Flipkart 

With hopes to expand its product line under its private label, Amazon India is ready to launch a smartphone under their brand name &#39;Tenor&#39; in January, reports said.&nbsp;

The e-commerce giant had previously also launched two smartphones under the same brand - Tenor E and G - just a few months prior to its competition Flipkart who introduced their smartphone &#39;Billion&#39;.&nbsp;

The current situation of private label market&nbsp;in India for smartphone is in its early stages.&nbsp;

The company follows a strategy of looking into customer data, pricing, selection and reach out to vendors to manufacture the right kind of products - calling it &#39;Crafted for Amazon&#39;.&nbsp;

According to Amazon, the focus will primarily be on targeting the local, low-brand and mid-brand strengths of smartphones which constitutes almost 20% of the total market, making it a $2-billion opportunity for the private lables.&nbsp;

Amazon presently has private labels called Solimo, Symbol and Myx for categories like staples, fashion and electronic accessories.&nbsp;

Even worldwide, the retail company has also been doubling down it own label as the Indian arm continues to bring out more products in categories like fashion, accessories, and home.

The e-commerce giant had previously also launched two smartphones under the same brand - Tenor E and G - just a few months prior to its competition Flipkart who introduced their smartphone 'Billion'

With hopes to expand its product line under its private label, Amazon India is ready to launch a smartphone under their brand name 'Tenor' in January, reports said. The e-commerce giant had previously also launched two smartphones under the same brand - Tenor E and G - just a few months prior to its competition Flipkart who introduced their smartphone 'Billion'. The current situation of private label market in India for smartphone is in its early stages. The company follows a strategy of looking into customer data, pricing, selection and reach out to vendors to manufacture the right kind of products - calling it 'Crafted for Amazon'. According to Amazon, the focus will primarily be on targeting the local, low-brand and mid-brand strengths of smartphones which constitutes almost 20% of the total market, making it a $2-billion opportunity for the private lables. Amazon presently has private labels called Solimo, Symbol and Myx for categories like staples, fashion and electronic accessories. Even worldwide, the retail company has also been doubling down it own label as the Indian arm continues to bring out more products in categories like fashion, accessories, and home.

Amazon India to launch smartphone in January

Bharti Airtel and Airtel Payments Banks have been temporarily banned from conducting Aadhaar-based SIM verification of Mobile customers using eKYC (ELectronic Know Your Customer) process and e-KYC of payments bank clients by Unique Identification Authority of India (UIDAI).

The action was taken after the allegations that Bharti Airtel is using the Aadhaar-eKYC based SIM verification process to open payments bank accounts of its subscribers without their &quot;informed consent.&quot;

As&nbsp;Airtel is on the interim ban, it won&#39;t be able to e-verify or link mobile SIMs with the Aadhaar ID through the eKYC process of UIDAI.&nbsp;

Customers also won&#39;t be able open their new account in Airtel Payment Bank.

A spokesperson for Airtel said, &quot;We can confirm that we have received an interim order from the UIDAI regarding temporary suspension of Aadhaar linked e-KYC services till their satisfaction on certain processes relating to Airtel payment banks onboarding of customers.&quot;

&quot;We are engaging with the authority and are hopeful of an early resolution. We are also undertaking to complete the said actions on priority and have commenced thorough checks of our process flows.

&nbsp;&quot;Being compliant to all guidelines is paramount to us. In the interim, any inconvenience to our customers is regretted.&quot;

The UIDAI also took strong&nbsp;objection to the allegations that such payment bank accounts are being linked to receive LPG subsidy.

The Airtel and Airtel Banks are found be violating a different section of the Aadhaar Act 2016, which mandates explicit consent of the individuals.

According to the law, the violations could lead to a fine of one lakh per day and termination of authentication user agreements.

Airtel has been opening Airtel Payments Bank Account, without the consent of the user, as they link the SIMs to the Aadhaar card.

According to reports, more than 23 Lakh customers have their Airtel Payments Bank Account without any prior awareness.

UIDAI observed that as per agreement with the authority, Airtel and Airtel bank are under obligation to ensure security and privacy of a resident&#39;s identity information.

An audit has also been ordered to examine if the Airtel&nbsp;and Airtel Payments Bank are in compliance with the Aadhaar Act. It will be conducted by PricewaterhouseCoopers.&nbsp;

According to the sources, when Airtel received the first notice it stated that they have amended the process and the opening of a bank account is delinked from the verification process.

Airtel also received a notice after the previous but even then the authority was receiving complaints about the unauthorised opening of Airtel Payments Bank accounts.

UIDAI also reviewed the Airtel Mobile app in which they saw that along with the welcome message, a pre-ticked consent box appears for a moment which states, &quot;Upgrade or create&nbsp;my Airtel Payment Bank wallet using existing Airtel mobile KYC&quot; which is found to be a disregard of Aadhaar Act and Regulations.&nbsp;

(With inputs from news agency) 
&nbsp;

The temporary action was taken by the UIDAI after the allegations that Bharti Airtel is using the verification process to open payments bank accounts of its subscribers without their 'informed consent'

Bharti Airtel and Airtel Payments Banks have been temporarily banned from conducting Aadhaar-based SIM verification of Mobile customers using eKYC (ELectronic Know Your Customer) process and e-KYC of payments bank clients by Unique Identification Authority of India (UIDAI). The action was taken after the allegations that Bharti Airtel is using the Aadhaar-eKYC based SIM verification process to open payments bank accounts of its subscribers without their "informed consent." As Airtel is on the interim ban, it won't be able to e-verify or link mobile SIMs with the Aadhaar ID through the eKYC process of UIDAI. Customers also won't be able open their new account in Airtel Payment Bank. A spokesperson for Airtel said, "We can confirm that we have received an interim order from the UIDAI regarding temporary suspension of Aadhaar linked e-KYC services till their satisfaction on certain processes relating to Airtel payment banks onboarding of customers." "We are engaging with the authority and are hopeful of an early resolution. We are also undertaking to complete the said actions on priority and have commenced thorough checks of our process flows. "Being compliant to all guidelines is paramount to us. In the interim, any inconvenience to our customers is regretted." The UIDAI also took strong objection to the allegations that such payment bank accounts are being linked to receive LPG subsidy. The Airtel and Airtel Banks are found be violating a different section of the Aadhaar Act 2016, which mandates explicit consent of the individuals. According to the law, the violations could lead to a fine of one lakh per day and termination of authentication user agreements. Airtel has been opening Airtel Payments Bank Account, without the consent of the user, as they link the SIMs to the Aadhaar card. According to reports, more than 23 Lakh customers have their Airtel Payments Bank Account without any prior awareness. UIDAI observed that as per agreement with the authority, Airtel and Airtel bank are under obligation to ensure security and privacy of a resident's identity information. An audit has also been ordered to examine if the Airtel and Airtel Payments Bank are in compliance with the Aadhaar Act. It will be conducted by PricewaterhouseCoopers. According to the sources, when Airtel received the first notice it stated that they have amended the process and the opening of a bank account is delinked from the verification process. Airtel also received a notice after the previous but even then the authority was receiving complaints about the unauthorised opening of Airtel Payments Bank accounts. UIDAI also reviewed the Airtel Mobile app in which they saw that along with the welcome message, a pre-ticked consent box appears for a moment which states, "Upgrade or create my Airtel Payment Bank wallet using existing Airtel mobile KYC" which is found to be a disregard of Aadhaar Act and Regulations. (With inputs from news agency)

Airtel banned from Aadhaar-eKYC based SIM verification

Amazon.com Inc`s Australian arm began taking orders on Tuesday, ending speculation about the timing of its launch in the world`s No. 12 economy and likely dashing hopes of a holiday boost for struggling brick-and-mortar rivals.

The global retailer said it would offer free shipping nationwide for purchases over A$49 ($37.26), with millions of products available from clothes to sporting goods to consumer electronics.

The move establishes the $550 billion behemoth as an aggressive presence in the sluggish Australian retail sector, just as shopkeepers were hoping for a rush of sales over the important Christmas holiday season.

Amazon`s Australia country manager, Rocco Braeuniger, said in a statement the U.S. company would &quot;earn the trust&quot; of Australian shoppers and, over time, create &quot;thousands of new jobs&quot;.

Australia has long been home to Amazon-registered sellers, but until Tuesday they were limited to sending goods offshore because the Seattle conglomerate did not have a warehouse in the country of 24 million people. This also meant Australians had to wait longer times, and pay higher fees, for shipping.

The company has now set up a massive distribution warehouse on the outskirts of Melbourne city, on the country`s east coast where four-fifths of the population live, and the company hopes to cut delivery time to as little as a day.

Under the free delivery offer, Amazon said it estimated delivery times as short as three business days in the cities of Sydney, Melbourne, Brisbane, Adelaide and Canberra - home to half the country`s population - while shipping to remote areas could take 10 days.

Shoppers could pay a fee for faster shipping times.

Amazon did not comment on any last-minute problems from an order-taking trial which began on Nov. 23.

It said it planned to offer its rapid-shipping subscription service, Prime, in mid-2018, in a sign it is unperturbed by the geographic challenge posed by one of the world`s most sparsely populated countries. Australia is the size of the mainland United States, with one-thirteenth its population.

Australian retail shares have fallen sharply since Amazon confirmed plans for the country in April. Shares of top department store operator Myer Holdings Ltd are down 30 percent since that time.

Myer has been shutting stores and ramping up online sales, and last month it halved its three-year target for growth in sales per square metre. Its online sales leapt 68 percent in the 13 weeks to Oct. 28, but remained only a tiny fraction of its total revenue.

Shares of No. 1 electronics retailer Harvey Norman Holdings Ltd are down 7 percent since April, while smaller JB HiFi are off by 6 percent amid fears of competition from Amazon.

($1 = 1.3149 Australian dollars)

Amazon.com Inc`s Australian arm began taking orders on Tuesday, ending speculation about the timing of its launch in the world`s No. 12 economy and likely dashing hopes of a holiday boost for struggling brick-and-mortar rivals. The global retailer said it would offer free shipping nationwide for purchases over A$49 ($37.26), with millions of products available from clothes to sporting goods to consumer electronics. The move establishes the $550 billion behemoth as an aggressive presence in the sluggish Australian retail sector, just as shopkeepers were hoping for a rush of sales over the important Christmas holiday season. Amazon`s Australia country manager, Rocco Braeuniger, said in a statement the U.S. company would "earn the trust" of Australian shoppers and, over time, create "thousands of new jobs". Australia has long been home to Amazon-registered sellers, but until Tuesday they were limited to sending goods offshore because the Seattle conglomerate did not have a warehouse in the country of 24 million people. This also meant Australians had to wait longer times, and pay higher fees, for shipping. The company has now set up a massive distribution warehouse on the outskirts of Melbourne city, on the country`s east coast where four-fifths of the population live, and the company hopes to cut delivery time to as little as a day. Under the free delivery offer, Amazon said it estimated delivery times as short as three business days in the cities of Sydney, Melbourne, Brisbane, Adelaide and Canberra - home to half the country`s population - while shipping to remote areas could take 10 days. Shoppers could pay a fee for faster shipping times. Amazon did not comment on any last-minute problems from an order-taking trial which began on Nov. 23. It said it planned to offer its rapid-shipping subscription service, Prime, in mid-2018, in a sign it is unperturbed by the geographic challenge posed by one of the world`s most sparsely populated countries. Australia is the size of the mainland United States, with one-thirteenth its population. Australian retail shares have fallen sharply since Amazon confirmed plans for the country in April. Shares of top department store operator Myer Holdings Ltd are down 30 percent since that time. Myer has been shutting stores and ramping up online sales, and last month it halved its three-year target for growth in sales per square metre. Its online sales leapt 68 percent in the 13 weeks to Oct. 28, but remained only a tiny fraction of its total revenue. Shares of No. 1 electronics retailer Harvey Norman Holdings Ltd are down 7 percent since April, while smaller JB HiFi are off by 6 percent amid fears of competition from Amazon. ($1 = 1.3149 Australian dollars)

Amazon Australia goes live in time to ruin rivals' Christmas

Facebook has decided to test &quot;Marketplace&quot;, a facility will link&nbsp;buyers and sellers in India, reports say.&nbsp;

&quot;Marketplace&quot;&nbsp;is a service which connects buyers and sellers, without charging anything&nbsp;and it makes reselling goods via mobiles or computers a&nbsp;seamless affair.&nbsp;

Indian users mostly engage in selling or buying jewellery and accessories, household goods, electronics, and apparel, a media report said. Facebook has decided not to create any particular categories as yet, hoping that once people start listing their products the categories will be formed.&nbsp;

Karandeep Anand, director,&nbsp;product management, Facebook, said that most Indians use social media platforms to &quot;buy or sell products&quot;. With the use of marketplace, Facebook aims to create an easier &quot;user experience, motivate people to engage&quot;&nbsp;and add &quot;economic activity locally.&quot;

Over 550 million Facebook users visit different groups on the page - which sell or buy items, globally. Thus, making up for a quarter of its 2 billion active monthly users. &nbsp;

Anand asserts that sellers are common people like students, artisans or NGOs. Therefore, instead of building a full-fledged e-commerce environment, Facebook aims to target its users and further present better tools.&nbsp;

Facebook also intends to provide&nbsp;tools related to privacy in order to limit information given by users, and also introduce&nbsp;machine learning which prohibits users from listing products like guns, cigarettes, alcohol and such items. Users will also be able to report fake accounts or ban items.

Facebook is looking into new grounds and has decided to test Marketplace, a facility linking buyers and sellers in India, reports say.?

Facebook has decided to test "Marketplace", a facility will link buyers and sellers in India, reports say. "Marketplace" is a service which connects buyers and sellers, without charging anything and it makes reselling goods via mobiles or computers a seamless affair. Indian users mostly engage in selling or buying jewellery and accessories, household goods, electronics, and apparel, a media report said. Facebook has decided not to create any particular categories as yet, hoping that once people start listing their products the categories will be formed. Karandeep Anand, director, product management, Facebook, said that most Indians use social media platforms to "buy or sell products". With the use of marketplace, Facebook aims to create an easier "user experience, motivate people to engage" and add "economic activity locally." Over 550 million Facebook users visit different groups on the page - which sell or buy items, globally. Thus, making up for a quarter of its 2 billion active monthly users. Anand asserts that sellers are common people like students, artisans or NGOs. Therefore, instead of building a full-fledged e-commerce environment, Facebook aims to target its users and further present better tools. Facebook also intends to provide tools related to privacy in order to limit information given by users, and also introduce machine learning which prohibits users from listing products like guns, cigarettes, alcohol and such items. Users will also be able to report fake accounts or ban items.

Facebook may compete with Olx, Quikr: Report

Chinese e-commerce giant Alibaba saw its Singles&rsquo; Day sales hit $16 billion by mid-morning on Saturday after racing to a billion dollars in just two minutes after the world&rsquo;s biggest shopping spree opened at midnight.

Once a celebration for China&rsquo;s lonely hearts, Singles&rsquo; Day has become an annual 24-hour extravaganza that exceeds the combined sales for Black Friday and Cyber Monday in the United States, and acts as a barometer for China&rsquo;s consumers.

After a star-studded event in Shanghai late Friday to ring in the event, the volume of goods sold on Alibaba&rsquo;s platforms hit $10 billion in just over an hour, and was already heading towards last year&rsquo;s total of $17.7 billion.

The event gets shoppers around China scouting for bargains and loading up their online shopping carts, while delivery men - and robots - are braced for an estimated 1.5 billion parcels expected over the next six days.

&ldquo;This is a big event for China, for the Chinese economy,&rdquo; Joseph Tsai, Ali Baba&rsquo;s co-founder and vice chairman, said ahead of the sales bonanza. &ldquo;On Singles&rsquo; Day, shopping is a sport, it&rsquo;s entertainment.&rdquo;

Tsai said rising disposable incomes of China&rsquo;s &ldquo;over 300 million middle-class consumers&rdquo; was helping drive the company&rsquo;s online sales - and would continue. &ldquo;This powerful group is propelling the consumption of China,&rdquo; he said.

Analysts and investors will closely watch the headline sales number, which looks likely to fly past last year&rsquo;s total. Spending rose by nearly a third at 2016&rsquo;s sale - the eighth iteration of the event - but that was slower than the 60 percent increase logged in 2015.

At Alibaba&rsquo;s Friday night gala, the company&rsquo;s co-founder and chairman, Jack Ma, hosted guests including the actress Nicole Kidman, singer Pharrell Williams and Chinese musicians and film stars such as Zhang Ziyi and Fan Bingbing.

Slower growth

The excitement around the shopping blitz, however, masks the challenges facing China&rsquo;s online retailers such as Alibaba and JD.com Inc, which are having to spend more to compete for shoppers in a broader economy where growth is slowing.

&ldquo;A lot of the lower hanging fruit has been picked and there&rsquo;s increased competition for a share of consumer spending,&rdquo; said Matthew Crabbe, Asia Pacific research director at Mintel.

He estimated Alibaba&rsquo;s Singles&rsquo; Day sales growth would likely slow to around 20 percent. Online retailers were being forced to push offline as well as overseas to attract new shoppers, and the overall online retail market was close to &ldquo;saturation&rdquo;.

&ldquo;They&rsquo;re having to spill over out of the purely online realm into the wider consumer market,&rdquo; Crabbe said.

This has sparked deals to buy bricks-and-mortar stores in China, and overseas tie-ups, especially in Southeast Asia. Technology, too, has been key, with virtual reality dressing rooms and live fashion shows to attract shoppers to haute couture.

Ben Cavender, the Shanghai-based principal at China Market Research Group, noted that brands were being more careful with the deals they have on offer this year to avoid &ldquo;margins getting killed&rdquo;, and were often asking for deposits in advance.

In previous years, most prices were often halved.

&ldquo;I think prices seem high and I&lsquo;m totally lost as to the rules&rdquo; about discounts, said Gao Wantong, 21, a student in Beijing.

Fu Wenyue, a 23-year-old dresser in Shanghai, said she had spent around 4,000 yuan ($600) on clothes, cosmetics and kitchen utensils in pre-event sales, transactions ahead of the day which officially only go through once midnight strikes.

&ldquo;I&rsquo;ve bought some stuff already, but I haven&rsquo;t finished shopping yet,&rdquo; she said.

($1 = 6.6386 Chinese yuan renminbi)

Sales hit $10 billion in just over an hour

Chinese e-commerce giant Alibaba saw its Singles’ Day sales hit $16 billion by mid-morning on Saturday after racing to a billion dollars in just two minutes after the world’s biggest shopping spree opened at midnight. Once a celebration for China’s lonely hearts, Singles’ Day has become an annual 24-hour extravaganza that exceeds the combined sales for Black Friday and Cyber Monday in the United States, and acts as a barometer for China’s consumers. After a star-studded event in Shanghai late Friday to ring in the event, the volume of goods sold on Alibaba’s platforms hit $10 billion in just over an hour, and was already heading towards last year’s total of $17.7 billion. The event gets shoppers around China scouting for bargains and loading up their online shopping carts, while delivery men - and robots - are braced for an estimated 1.5 billion parcels expected over the next six days. “This is a big event for China, for the Chinese economy,” Joseph Tsai, Ali Baba’s co-founder and vice chairman, said ahead of the sales bonanza. “On Singles’ Day, shopping is a sport, it’s entertainment.” Tsai said rising disposable incomes of China’s “over 300 million middle-class consumers” was helping drive the company’s online sales - and would continue. “This powerful group is propelling the consumption of China,” he said. Analysts and investors will closely watch the headline sales number, which looks likely to fly past last year’s total. Spending rose by nearly a third at 2016’s sale - the eighth iteration of the event - but that was slower than the 60 percent increase logged in 2015. At Alibaba’s Friday night gala, the company’s co-founder and chairman, Jack Ma, hosted guests including the actress Nicole Kidman, singer Pharrell Williams and Chinese musicians and film stars such as Zhang Ziyi and Fan Bingbing. Slower growth The excitement around the shopping blitz, however, masks the challenges facing China’s online retailers such as Alibaba and JD.com Inc, which are having to spend more to compete for shoppers in a broader economy where growth is slowing. “A lot of the lower hanging fruit has been picked and there’s increased competition for a share of consumer spending,” said Matthew Crabbe, Asia Pacific research director at Mintel. He estimated Alibaba’s Singles’ Day sales growth would likely slow to around 20 percent. Online retailers were being forced to push offline as well as overseas to attract new shoppers, and the overall online retail market was close to “saturation”. “They’re having to spill over out of the purely online realm into the wider consumer market,” Crabbe said. This has sparked deals to buy bricks-and-mortar stores in China, and overseas tie-ups, especially in Southeast Asia. Technology, too, has been key, with virtual reality dressing rooms and live fashion shows to attract shoppers to haute couture. Ben Cavender, the Shanghai-based principal at China Market Research Group, noted that brands were being more careful with the deals they have on offer this year to avoid “margins getting killed”, and were often asking for deposits in advance. In previous years, most prices were often halved. “I think prices seem high and I‘m totally lost as to the rules” about discounts, said Gao Wantong, 21, a student in Beijing. Fu Wenyue, a 23-year-old dresser in Shanghai, said she had spent around 4,000 yuan ($600) on clothes, cosmetics and kitchen utensils in pre-event sales, transactions ahead of the day which officially only go through once midnight strikes. “I’ve bought some stuff already, but I haven’t finished shopping yet,” she said. ($1 = 6.6386 Chinese yuan renminbi)

China Single's Day 24-hour online shopping binge nears $16 billion

China&#39;s first &quot;cyber court&quot; was launched&nbsp;on Friday&nbsp;to settle online disputes, as the legal system attempts to keep up with the explosion of mobile payment and e-commerce.

Residents of the eastern city of Hangzhou, home to e-commerce giant Alibaba, can now register their Internet-related civil complaints online and wait to log onto to their trial via video chat.

The cyber court will &quot;offer regular people an efficient, low-cost solution to these new kinds of disputes that take place on the internet,&quot; Du Qian, the cyber-court chief justice, told the official Supreme People&#39;s Court news agency.

&quot;Not only will this make lawsuits as convenient as online shopping, but it will also give online shopping the same degree of judicial protection as consumption at brick-and-mortar stores.&quot;

The court will handle cases such as online trade disputes, copyright lawsuits, and product liability claims for online purchases.

China is home to the world&#39;s largest number of internet users, 731 million at the end of last year, and e-commerce is a vital part of the government&#39;s efforts to turn China into a consumer demand-driven economy.

Consumers spent $17.8 billion during Alibaba&#39;s biggest online shopping promotion on&nbsp;November 11&nbsp;last year, more than twice the five-day desktop sales from Thanksgiving through Cyber&nbsp;Monday&nbsp;in the US last year.

The cyber court is opened to settle online disputes, as the legal system attempts to keep up with the explosion of mobile payment and e-commerce

China's first "cyber court" was launched on Friday to settle online disputes, as the legal system attempts to keep up with the explosion of mobile payment and e-commerce. Residents of the eastern city of Hangzhou, home to e-commerce giant Alibaba, can now register their Internet-related civil complaints online and wait to log onto to their trial via video chat. The cyber court will "offer regular people an efficient, low-cost solution to these new kinds of disputes that take place on the internet," Du Qian, the cyber-court chief justice, told the official Supreme People's Court news agency. "Not only will this make lawsuits as convenient as online shopping, but it will also give online shopping the same degree of judicial protection as consumption at brick-and-mortar stores." The court will handle cases such as online trade disputes, copyright lawsuits, and product liability claims for online purchases. China is home to the world's largest number of internet users, 731 million at the end of last year, and e-commerce is a vital part of the government's efforts to turn China into a consumer demand-driven economy. Consumers spent $17.8 billion during Alibaba's biggest online shopping promotion on November 11 last year, more than twice the five-day desktop sales from Thanksgiving through Cyber Monday in the US last year.

China opens its first 'cyber court'

Refuting charges of non payment, e-commerce major Snapdeal said it has no outstanding dues towards sellers on its platform.

The statement comes after e-sellers&#39; representative body -&nbsp;All India Online Vendors Association (AIOVA) -&nbsp;alleged that the city-based online marketplace has not settled dues with many sellers.

Snapdeal said payments to sellers are made 6-10 times a month and typically, sellers receive their payments within 3-5 days of the sale of their goods.

It added that in a few cases, details are awaited from sellers in support of the claims made by them.

&quot;In these cases, sellers have so far failed to provide required justification for their claims despite multiple attempts by Snapdeal to facilitate these settlements,&quot; Snapdeal Senior Vice President (Finance Operations) Sanjay Agarwal said.

He added that these are minor amounts, which will get paid based on information provided by sellers and in accordance with the contracts and seller policies.

In recent weeks, Snapdeal claimed it has further expedited the payment cycles for sellers, making payments faster.

Earlier this week, AIOVA had written to corporate affairs ministry and commerce ministry seeking their intervention on the proposed Snapdeal-Flipkart deal.

According to sources, Snapdeal&#39;s largest investor SoftBank has been proactively mediating with the board members over the past few weeks for a potential sale to Flipkart and has succeeded in getting their consent.

A non-binding term sheet to undertake due diligence on Snapdeal by Flipkart is expected to be signed soon.

(PTI)

Snapdeal says payments to sellers are made 6-10 times a month and typically, sellers receive their payments within 3-5 days of the sale of their goods

Refuting charges of non payment, e-commerce major Snapdeal said it has no outstanding dues towards sellers on its platform. The statement comes after e-sellers' representative body - All India Online Vendors Association (AIOVA) - alleged that the city-based online marketplace has not settled dues with many sellers. Snapdeal said payments to sellers are made 6-10 times a month and typically, sellers receive their payments within 3-5 days of the sale of their goods. It added that in a few cases, details are awaited from sellers in support of the claims made by them. "In these cases, sellers have so far failed to provide required justification for their claims despite multiple attempts by Snapdeal to facilitate these settlements," Snapdeal Senior Vice President (Finance Operations) Sanjay Agarwal said. He added that these are minor amounts, which will get paid based on information provided by sellers and in accordance with the contracts and seller policies. In recent weeks, Snapdeal claimed it has further expedited the payment cycles for sellers, making payments faster. Earlier this week, AIOVA had written to corporate affairs ministry and commerce ministry seeking their intervention on the proposed Snapdeal-Flipkart deal. According to sources, Snapdeal's largest investor SoftBank has been proactively mediating with the board members over the past few weeks for a potential sale to Flipkart and has succeeded in getting their consent. A non-binding term sheet to undertake due diligence on Snapdeal by Flipkart is expected to be signed soon. (PTI)

No outstanding dues to sellers: Snapdeal

India has the fastest growing e-commerce market in the world, valued at more than $12 billion. Unfortunately, the number of consumer complaints against India&rsquo;s leading e-commerce companies has also steadily shot up.

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The Minister of State for Consumer Affairs Mr CR Chaudhary shared the details of complaints received against e-Commerce companies during the last three years with the Lok Sabha. And the numbers shot up by more than 300%.While the National Consumer Helpline registered 418 complaints during 2014-15, the number shot up to 1,386 till December 2016.

Need for a separate law 

At a time when online transactions have steadily shot up, the need for a separate law or agency to tackle consumer grievances has been evaluated by various agencies.

A study conducted by the Indian Institute of Management Ahmedabad, stressed on the need for a separate law for e-commerce. The study was reviewed proposed amendments in the Consumer Protection Act.

The Indian government too considered the need for a regulator for e-commerce in India. An Inter Ministerial Committee was setup in 2014 to evaluate the need for a regulator for any form of direct selling or multi level marketing.

But as per the government of the day, there is no proposal to bring in a separate legislation for e-commerce platforms. The Consumer Affairs minister, in his reply to the Lok Sabha, maintained that under the new Consumer Protection Bill, the Central Consumer Protection Authority should be good enough to look into any consumer complaints against e-commerce companies.

The global scenario

The debate around e-commerce law is not new.

The boost in e-commerce business in 1990s sparked off the first debate around regulation. Taking a cue, the United Nations General Assembly in 1996 approved a model law. The purpose of the Model law of Electronic Commerce was to &lsquo;offer national legislators a set of internationally acceptable rules&rsquo;.

Similarly, the European Union as well issued the Electronic Commerce directive in 2000, with an aim to set up &lsquo;an internal market framework for electronic commerce, which provides legal certainty for business and consumers alike. &rsquo;

Countries at the center of e-commerce activity have developed frameworks overtime to carry out business.

The United States has three key laws, laying out measures for economic activity online- The Anticybersquatting Consumer Protection Act, Children&#39;s Online Privacy Protection Act, and the Electronic Signatures in Global and National Commerce Act.

Post the guidelines from the European Union, the UK government too introduced the Consumer Protection Regulations Act in 2000. This was later repealed in June 2014, and replaced by the Consumer Contracts and Regulations act-which had specific provisions to protect consumers transacting online.

Closer to home, China&rsquo;s lawmakers presently are debating a draft law to regulate the world&rsquo;s largest e-commerce market.

In India, the shutdown of consumer internet search platform AskMe and its sister concerns-AskMe Bazaar and Mebelkart last year, sent shockwaves in the industry.

The Indian Government, with the new consumer protection law, has proposed several amendments to empower regulatory authorities. This includes powers to recall products and initiate class action lawsuits against defaulting companies.

But the law still awaits the nod of our parliamentarians.

Complaints by consumers to the National Consumer Helpline rose by more than 300%

India has the fastest growing e-commerce market in the world, valued at more than $12 billion. Unfortunately, the number of consumer complaints against India’s leading e-commerce companies has also steadily shot up. The Minister of State for Consumer Affairs Mr CR Chaudhary shared the details of complaints received against e-Commerce companies during the last three years with the Lok Sabha. And the numbers shot up by more than 300%.While the National Consumer Helpline registered 418 complaints during 2014-15, the number shot up to 1,386 till December 2016. Need for a separate law At a time when online transactions have steadily shot up, the need for a separate law or agency to tackle consumer grievances has been evaluated by various agencies. A study conducted by the Indian Institute of Management Ahmedabad, stressed on the need for a separate law for e-commerce. The study was reviewed proposed amendments in the Consumer Protection Act. The Indian government too considered the need for a regulator for e-commerce in India. An Inter Ministerial Committee was setup in 2014 to evaluate the need for a regulator for any form of direct selling or multi level marketing. But as per the government of the day, there is no proposal to bring in a separate legislation for e-commerce platforms. The Consumer Affairs minister, in his reply to the Lok Sabha, maintained that under the new Consumer Protection Bill, the Central Consumer Protection Authority should be good enough to look into any consumer complaints against e-commerce companies. The global scenario The debate around e-commerce law is not new. The boost in e-commerce business in 1990s sparked off the first debate around regulation. Taking a cue, the United Nations General Assembly in 1996 approved a model law. The purpose of the Model law of Electronic Commerce was to ‘offer national legislators a set of internationally acceptable rules’. Similarly, the European Union as well issued the Electronic Commerce directive in 2000, with an aim to set up ‘an internal market framework for electronic commerce, which provides legal certainty for business and consumers alike. ’ Countries at the center of e-commerce activity have developed frameworks overtime to carry out business. The United States has three key laws, laying out measures for economic activity online- The Anticybersquatting Consumer Protection Act, Children's Online Privacy Protection Act, and the Electronic Signatures in Global and National Commerce Act. Post the guidelines from the European Union, the UK government too introduced the Consumer Protection Regulations Act in 2000. This was later repealed in June 2014, and replaced by the Consumer Contracts and Regulations act-which had specific provisions to protect consumers transacting online. Closer to home, China’s lawmakers presently are debating a draft law to regulate the world’s largest e-commerce market. In India, the shutdown of consumer internet search platform AskMe and its sister concerns-AskMe Bazaar and Mebelkart last year, sent shockwaves in the industry. The Indian Government, with the new consumer protection law, has proposed several amendments to empower regulatory authorities. This includes powers to recall products and initiate class action lawsuits against defaulting companies. But the law still awaits the nod of our parliamentarians.

Infographics: Consumer complaints in India against e-commerce giants at a record high

India&#39;s biggest e-commerce firm Flipkart is buying domestic online fashion retailer Jabong from Global Fashion Group for $70 million in cash, the latest consolidation move in the country&#39;s e-commerce sector as competition intensifies. 
 
Flipkart unit Myntra, India&#39;s largest online fashion retailer which is buying Jabong, said today that the two sites will have a combined base of 15 million monthly active users. Global Fashion Group is backed by Germany&#39;s Rocket Internet and Sweden&#39;s Kinnevik. 
 
Niche e-commerce players in India are facing greater competition from both domestic rivals and the likes of Amazon.com Inc, at a time when industry valuations have begun to cool. 
 
Rocket Internet had flagged earlier this year that business was tough in India, warranting more investment by Global Fashion Group. 
 
The deal puts Myntra, which itself was bought by Flipkart for about $300 million last year, in a stronger position to take on Flipkart&#39;s biggest local rival Snapdeal and Amazon, which has pledged to invest over $5 billion in India to boost market share in the country. 
 
Amazon&#39;s huge bet and tough competition have already prompted some small local players to consolidate. Privately held Indian conglomerate Future Group, which owns a string of fashion and retail assets, earlier in 2016 bought online furniture retailer FabFurnish.com. 
 
The e-commerce fashion retail space in India has especially been attracting investment from not only established names such as Flipkart, Snapdeal and Amazon, but also from newer entrants like Reliance Industries - India&#39;s largest company, which outlined plans to roll out an e-commerce website in April. 
 
India&#39;s e-commerce market is seen as having potential though, with annual sales of $36.7 billion expected by 2020, consultants KPMG said in report in November. 
 
The Myntra and Jabong sites will exclusively offer international brands. 
 
(Reuters)

The deal puts Myntra in a stronger position to take on their biggest local rival Snapdeal and Amazon

India's biggest e-commerce firm Flipkart is buying domestic online fashion retailer Jabong from Global Fashion Group for $70 million in cash, the latest consolidation move in the country's e-commerce sector as competition intensifies. Flipkart unit Myntra, India's largest online fashion retailer which is buying Jabong, said today that the two sites will have a combined base of 15 million monthly active users. Global Fashion Group is backed by Germany's Rocket Internet and Sweden's Kinnevik. Niche e-commerce players in India are facing greater competition from both domestic rivals and the likes of Amazon.com Inc, at a time when industry valuations have begun to cool. Rocket Internet had flagged earlier this year that business was tough in India, warranting more investment by Global Fashion Group. The deal puts Myntra, which itself was bought by Flipkart for about $300 million last year, in a stronger position to take on Flipkart's biggest local rival Snapdeal and Amazon, which has pledged to invest over $5 billion in India to boost market share in the country. Amazon's huge bet and tough competition have already prompted some small local players to consolidate. Privately held Indian conglomerate Future Group, which owns a string of fashion and retail assets, earlier in 2016 bought online furniture retailer FabFurnish.com. The e-commerce fashion retail space in India has especially been attracting investment from not only established names such as Flipkart, Snapdeal and Amazon, but also from newer entrants like Reliance Industries - India's largest company, which outlined plans to roll out an e-commerce website in April. India's e-commerce market is seen as having potential though, with annual sales of $36.7 billion expected by 2020, consultants KPMG said in report in November. The Myntra and Jabong sites will exclusively offer international brands. (Reuters)

Flipkart's Myntra acquires Jabong for $70 million in cash

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