GS Paper 3
Syllabus: Liberalisation after 1991
Source: Rajya Sabha
Context: Recent report of the committee “Promotion and Regulation of E-commerce in India”
(Note down 2-3 suggestions from the report and understand the difference between various models of e-commerce)
Issues highlighted by the report:
- Few platforms control a large part of the e-commerce market (which may lead to monopoly)
- Lack of platform neutrality, i.e., providing preferential treatment to selected sellers
- Deep discounting,e., discounts of preferred sellers are selectively funded by the platform
- Non-transparent search rankings
- Misuse of data
- Formulate a policy which clearly defines marketplace and inventory-based models of e-commerce.
- It recommended that marketplace-commerce entities should:
- not sell goods that it owns or controls
- not have any direct or indirect relationship with sellers who sell on the platform
- be prohibited from licensing their brand to third-party sellers on the platform
- Gatekeeper entities: Certain e-commerce platforms need greater scrutiny (as is applicable in other countries): It recommends India should select “gatekeeper” platforms of a specific scale that require more stringent supervision.
- Mandatory registration of e-commerce companies with DPIIT
- Create Digital Market Division to overcome regulatory gaps
- Implement the Personal Data protection bill (2019)
- DPIIT should address issues such as maintaining a level playing field between small businesses and e-commerce giants and provide technical support to small and local businesses.
- Obligations put on e-commerce entities through Consumer Protection (E-Commerce) Rules, 2020(such as the appointment of the chief compliance officer, and setting up a grievance redressal mechanism) should be applicable to those entities above a certain threshold.
- It puts a compliance burden on new e-commerce entities.