India’s New Restrictions Impact Walmart and Amazon

New regulations in India will have immediate and substantial impacts on Amazon and Walmart, two companies known for using their industry experience and massive buying power to drive down prices.

The restrictions,  unveiled by the Indian government on Wednesday,  ban foreign e-commerce companies from offering their customers exclusive products such as smartphones.

India has long expressed fears that,  as the  world’s fastest growing major economy, the majority of their economy could become dominated by American firms. These new restrictions, scheduled to take effect on February  1,  reflect these fears.
The rules state:
“E-commerce entities providing marketplace will not directly or indirectly influence the sale price of goods or services and shall maintain level playing field.”

Walmart took control of Flipkart,  India’s biggest e-commerce company and Amazon’s chief rival in the country,  in May, spending $16 billion on a 77% stake.