Government To Lay Down Competition Guidelines For E-Commerce Firms It is also added that regulating e-commerce intermediaries on grounds of only misinformation is not enough as they need to be regulated on grounds of competition

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pexels

The government will lay down competition related guidelines for e-commerce firms such as Flipkart, Amazon, Swiggy, Zomato and others wherein market share, merger and acquisition and cross-holding caps will be fixed, according to a report by FE.

The thinking in the government is that intermediaries should be categorized in terms of their characteristics. For instance, social media, as an intermediary, has different characteristics and different impacts on a consumer, than e-commerce and digital media. So all these should not be seen through one lens but through multiple streams of regulation, stated the report, citing the sources involved in the drafting of regulations.

"Today there's a lot of ad-hocism. Some aggrieved party approaches Competition Commission of India and the anti-trust regulator then decides whether the practices against which complaint has been made is anti-competitive or not. All this will change once the guidelines are put in place," added the report quoting the sources.

The guidelines will also look into aspects like merger and acquisitions between two e-commerce firms in the same space, how much market share can such a merged entity have, what kind of cross-holdings can there be between two or more players.

"These are early days and the matter is on the drawing board. A public consultation will be done to seek stakeholders' comments before the government proceeds to finalise such guidelines," said the sources as per the report.

It is also added that regulating e-commerce intermediaries on grounds of only misinformation is not enough as they need to be regulated on grounds of competition also.

Currently, as per reports, the information technology rules regulate only social media platforms like Twitter, Facebook, Instagram etc. It added that there are also regulatory guidelines for over-the-top players like Netflix, Amazon Prime Video etc.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Growth Strategies

JLR To Ramp Up Production Of Made In India Range Rover & Range Rover Sport; To Focus On SV Variants: Rajan Amba

We are focusing on tailor made limited edition cars, specifically for the Indian market, catering to the high net worth individuals (HNIs), says Rajan Amba, MD, JLR India

Side Hustle

'I Was Called Crazy': This 27-Year-Old's Side Hustle Hit $30,000 a Month in Under a Year — Now It's Worth Millions

Changing regulations forced Angel Rodriguez's jet ski rental company to shut down, and the young entrepreneur had to figure out his next move — fast.

Leadership

Why The Wisest Leaders Listen First Before They Act

If talking isn't getting you ahead, try listening instead. The advantages of truly hearing others are as transformational in business as they are in our personal lives.

Growing a Business

4 Advanced Marketing Tactics for Small Businesses That Actually Work

Small businesses can adopt advanced marketing strategies to stand out and achieve sustainable growth. Techniques like personalization, content clusters and virtual events help build stronger customer connections and deliver real results.

Science & Technology

Want to Make Money With AI? Here Are Easy Steps to Unlock Explosive Profits in 2025

Learn to turn Google AI Studio into a profit-boosting machine with this three-step framework. Train AI to analyze data, uncover sales opportunities and maximize profits.