mazon and Walmart-owned Flipkart will suffer a big blow as the government has barred them from selling their own goods while also putting an end to deep discounts and cashback schemes offered by them.
The government’s move comes after local traders complained that they were being put out of business because of steep discounts these e-commerce companies offered.
The government also banned the online retailers from entering into exclusive deals to promote brands. This means, Xiaomi will not be able to sell its Mi phones exclusively on Flipkart, a practice typically adopted at the time of a product launch.
e-commerce companies will now have to furnish a certificate along with a report of statutory auditor to the Reserve Bank of India (RBI), confirming compliance of these guidelines, by September 30 of every year.