With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct ?
- They can sell their own goods in addition to offering their platforms as market-places.
- The degree to which they can own big sellers on their platforms is limited.
Select the correct answer using the code given below :
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Answer is Wrong!
Answer is Right!
This question was previously asked in
UPSC IAS – 2022
Statement 2 is correct. The FDI policy for e-commerce marketplace limits the equity participation of the marketplace entity or its group companies in any seller on the marketplace to 10%. It also restricts the total sales from a single vendor (or its group companies) on the marketplace to 25% of the marketplace’s total sales. These limitations are intended to prevent the marketplace operator from unduly influencing prices or controlling inventory, thereby promoting fair competition.