★ A marketplace should not sell its own products or own equity in the products it sells ➜ INDIA

RealDaddy

Repeatedly violating rules
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For India, a marketplace is a marketplace. A marketplace should not sell its own products or own equity in the products it sells. The reason? Preferential treatment.

http://www.google.com/url?q=http%3A%2F%2Fcm.wtaff.co%2Ft%2Fj-l-fihlhhk-iytuguttl-u%2F&sa=D&sntz=1&usg=AFQjCNEzid5fMKSE1QrGsCPFFOLgDQhGvQ proposed in India’s new law, which was announced in June.

Amazon’s reaction: Amazon, Flipkart, and Tata have all complained about this, with the most recent complaint coming http://www.google.com/url?q=http%3A%2F%2Fcm.wtaff.co%2Ft%2Fj-l-fihlhhk-iytuguttl-o%2F&sa=D&sntz=1&usg=AFQjCNHHk7SGf2WnUQMO_EfMHLYXWQFZSQ. According to them, this will “hurt sellers” and be harmful to the whole ecosystem.

The opportunity: If the Indian policy does its job, it should open the market for smaller entrants who want to sell to India’s vast 1.3 billion population. According to Indian politicians, the main reason for this law is that larger companies are collaborating with Amazon and Flipkart to make it more difficult for new players to enter the market.

Perhaps the only thing that will be hurt by all of this is Amazon's bottom line, at the expense of new and innovative players entering the market. Which might not be such a bad thing.
 
It will be interesting to see how this pans out
 
Won't be an issue for amazon as they have a global audience
(and they're most reputable in the eyes of public)
 
It's a good thing for new players. These biggies have predatory practices. But I guess this proposed law is going to face a long courtroom battle.
 
There used to be a budding e-commerce company called Letsbuy in around 2011-12 which is based on New Delhi. They used to offer products at much cheaper prices and maintain quality. Flipkart overtook them and started selling scrap for higher prices. When Amazon got a little popular, Flipkart couldn't survive the storm alone and the complaints against them flooded the social media. I believe that this new law will help companies like letsbuy get more recognition.
 
I think this is a good move to prevent monopolization. One of the biggest concerns, globally, is how Amazon is engaging in anti-competitive practices, first by luring in sellers, becoming the default distribution network, then selling it's own products (Amazon brand) in direct competition with products offered by the sellers on the platform. It's similar to how Google is attempting to monopolize the browser market with chrome + recaptcha. By ensuring that non-Chrome browsers break recapthca, and ensuring widespread adoption of recaptcha by websites, they eliminate all competition.
 
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