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    Flipkart says 'disappointed' with govt's decision to implement new ecommerce rules in haste

    Flipkart says 'disappointed' with govt's decision to implement new ecommerce rules in haste

    Flipkart says 'disappointed' with govt's decision to implement new ecommerce rules in haste
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    By CNBC-TV18  IST (Updated)

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    Walmart Inc-owned Flipkart on Friday said it was disappointed with the government's decision to implement new foreign direct investment rules in e-commerce sector "at such haste".

    Walmart Inc-owned Flipkart on Friday said it was disappointed with the government's decision to implement new foreign direct investment rules in ecommerce sector "at such haste".
    “We are disappointed that the government has decided to implement the regulation changes at such haste, but we are committed to doing everything we can to be compliant with the new rules," a Flipkart spokesperson said in a statement.
    According to a Reuters report, Flipkart has told the government the company faces the risk of "significant customer disruption" if the implementation of new curbs for e-commerce is not delayed by six months.
    The new foreign investment restrictions from February 1, bar ecommerce companies from selling products from firms in which they have an equity interest and also ban them from reaching deals with sellers to only sell on one platform.
    This, in principle is likely to severely impact both Amazon and Flipkart by barring them from selling products of entities in which they own stakes from today.
    Indian officials have said the government is unlikely to change the policy's implementation date.
    "Despite the significant work that is required to change our supply chains and systems, we are also confident that we will continue to serve our customers and sellers to the standards we and they are used to," the spokesperson said, adding that the company believes "policy should be created in a consultative, market-driven manner".
    The policy move has jolted Walmart, which last year invested $16 billion in Flipkart in its biggest ever deal, and Amazon, which has committed $5.5 billion in India investments.
    Industry sources told Reuters that the new policy would raise compliance costs and force Amazon and Flipkart to review their business arrangements in the country.
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