India is planning to set up a new regulator to enforce tighter controls on e-commerce as investment in the sector, particularly from international companies, increases.
According to a report from Reuters, the new regulator could force companies such as Amazon and Walmart’s Flipkart to swiftly supply the information it requires, potentially within 72 hours.
Two sources told Reutersthe regulator would not only enforce these requirements but other Indian laws regarding foreign investment, competition and consumer protection.
If the regulations are not adhered to penalties will apply, however, the policy is said to be at a draft stage and is subject to further deliberations, so it is not clear what those penalties may be.
The type information these companies would be required to provide has not yet been settled either but the sources said the rules are also likely to apply to social media platforms such as Facebook, whose revenue is connected to advertising based off consumer data.
