Amazon, Walmart foiled by new rules
India has implemented new e-commerce regulations that could cut their growth
Amazon.com and Walmart's grand plans for India were thrown into chaos on Friday after the country implemented new e-commerce regulations that could cut their growth in the market by as much as half this year. Prime Minister Narendra Modi's government tightened rules for the retail giants after complaints from domestic sellers. Amazon and Walmart's Flipkart are now banned from cutting exclusive arrangements with sellers, offering deep discounts or holding any business interest in online merchants. Thousands of products have already vanished from the virtual shelves of the duo, which together account for 70% of India's online retail market. Arvind Singhal of consultancy Technopak Advisors estimates their revenue growth could fall to 15% in coming months from 25% to 30% previously. Amazon's shares slid as analysts pushed the company for answers on India, a market it regards as the best for international expansion. Jeff Bezos has pledged to spend $5.5bn there in pursuit of growth, but e...
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