Exclusive: India plans foreign investment rule changes that could hit Amazon

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By Aditya Kalra and Krishna N. Das
NEW DELHI (Reuters) – India is considering revising its foreign investment rules for e-commerce, three sources and a government spokesman told Reuters, a move that could compel players, including Amazon.com Inc, to restructure their ties with some major sellers.
The government discussions coincide with a growing number of complaints from India’s bricks-and-mortar retailers, which have for years accused Amazon and Walmart Inc-controlled Flipkart of creating complex structures to bypass federal rules, allegations the U.S. companies deny.
India only allows foreign e-commerce players to operate as a marketplace to connect buyers and sellers. It prohibits them from holding inventories of goods and directly selling them on their platforms.
Amazon and Walmart’s Flipkart were last hit in Dec. 2018 by investment rule changes that …

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