Amazon pulls products from India website as e-commerce rules come into effect

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India’s new e-commerce investment rules prohibit online retailers from selling products through suppliers in which they have a shareholding.

The e-commerce rules that went into effect in India on Friday caused widespread disruption on Amazon.com, forcing it to remove a number of elements from its India website, including the Echo speakers.

Two sources, with direct knowledge of the matter, said that the products began to disappear from the Amazon India website late on Thursday, as they began to comply with the revised standards before the midnight deadline.

“The company has no other choice, it is meeting a compliance requirement … customers will suffer,” said one of the sources.

In December, India changed the rules of foreign direct investment (FDI) for its burgeoning e-commerce sector, which has generated significant bets not only from Amazon.com but also from Walmart Inc., which last year bought a majority stake in the local market. – Flipkart trade player.

India’s new e-commerce investment rules prohibit online retailers from selling products through suppliers in which they hold a shareholding, and also to make agreements with sellers to sell exclusively on their platforms. By Thursday, numerous items sold by suppliers such as Cloudtail, in which Amazon owns an indirect equity stake, were no longer available on the Amazon India site.

The clothes of the Indian department store chain Shopper’s Stop was also unavailable, since Amazon owns 5% of the company. Amazon’s own Echo range of speakers, its home cleaning products with the Presto brand and other Amazon Basics products, such as chargers and batteries, also disappeared from the website.