• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Rivals Amazon and Walmart Team Up to Fight New E-Commerce Regulations

Rivals Amazon and Walmart Team Up to Fight New E-Commerce Regulations

Asia's Richest Man Wants to Take on Amazon in India. Here’s How.
Source: Bloomberg
January 9, 2019
Bloomberg

Amazon.com Inc. and Walmart Inc. find themselves on the same side for once.

The bitter rivals have come together in India to lobby the government on regulations that threaten to dampen their expansion ambitions. Among other things, the giant retailers are asking for an extension on a Feb. 1 deadline for implementing those rules, according to people with knowledge of the matter.

The newly tightened regulations threaten to pinch Amazon and Walmart’s Flipkart in one of the world’s fastest growing online commerce arenas, where both have invested billions of dollars. They require online marketplaces to treat all vendors equally, effectively barring foreign companies from featuring exclusive products on their platforms, owning inventory, and thus being able to influence pricing and offer huge discounts.

In addition, Amazon and Flipkart get a lot of their Indian inventory through companies they own or back, goods that are then sold directly or through favored merchants. One such seller is Cloudtail, owned by a joint venture between Amazon and a company run by Infosys Ltd. billionaire co-founder Narayana Murthy. As rules stand, the two American companies must sell any stakes they hold in such companies.

“They are campaigning together against the new rules because these companies have over $20bn at stake in the Indian market,” said Satish Meena, a New Delhi-based forecast analyst at Forrester Research Inc. “At least another $10bn investment will be made by these two companies in the next few years and this is the leverage they are trying to use.”

The Economic Times first reported on lobbying to extend the Feb. 1 deadline.

Walmart invested $16bn last year to acquire Flipkart Online Services Pvt, and Amazon has invested in offline retailers like Shopper’s Stop and is reportedly discussing investing in Future Retail. Amazon said Friday it’s evaluating the new guidelines and will engage the government as needed, without addressing the issue of joint lobbying. Flipkart didn’t respond to emails seeking comment.

The regulations were announced late last month, a few months ahead of national elections, when the government will need the support of the vast group of small retailers who’ve been hit by the growth of online retail and other government moves. Those same merchants have accused Amazon and Flipkart in the past of predatory practices.

It isn’t all bad for Amazon and Walmart, however. The government’s Department of Industrial Policy & Promotion clarified on Thursday that the present policy does not prevent private labels from being sold on the marketplace, meaning Amazon and Flipkart can still push their own wares in categories ranging from fashion to consumer electronics.

RELATED CONTENT

RELATED VIDEOS

Logistics Global Logistics Business Strategy Alignment Regulation & Compliance Consumer Packaged Goods E-Commerce/Omni-Channel Retail Asia Pacific
KEYWORDS Asia Pacific Business Strategy Alignment consumer packaged goods E-Commerce/Omni-Channel Global Logistics Logistics Regulation & Compliance Retail
  • Related Articles

    Wal-Mart To Shake Up Online Team, Cut Prices In Amazon Fight

    Can Walmart's Expensive New E-Commerce Operation Compete With Amazon?

    Walmart’s New Challenge to Amazon Prime Has Deep Roots

Bloomberg

As Retail Sales Improved, Inventories Rose Less in February Than Expected

More from this author

Wake up to Coronavirus Updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Coronavirus-watch-Armada

    Virus Update: EU Fails to Fix AstraZeneca Dispute; U.S. Needs 500 Million Doses

    Coronavirus
  • The World Is Dangerously Dependent on Taiwan for Semiconductors

    The World Is Dangerously Dependent on Taiwan for Semiconductors

    Technology
  • Supply-Chain and Procurement Software in 2021

    Ten Predictions for Supply-Chain and Procurement Software in 2021

    Coronavirus
  • California Trucker

    Why One Southern California Trucker Stays Independent

    Logistics
  • Shippers

    Shippers Saw a Need for Bigger Vessels, But They Built Them Too Big

    Logistics

Digital Edition

Scb home issue 27

2020 Supply Chain Innovator of the Year

VIEW THE LATEST ISSUE

Case Studies

  • LSP Saves Customer $1.5 Million a Year With MPO Global Inbound Management

  • Auto Supplier Wows Key Client Using riskmethods Supply Chain Savvy

  • Integrating Shipping and Compliance Saves Conglomerate Millions

  • How a Consumer Goods Giant Upped Its On-Time Delivery Performance

  • LSP Wows Global Client, Quickly Advances to Become End-to-End Provider

Visit Our Sponsors

6 River Systems ArcBest Armada
aThingz BluJay Burris Logistics
DSC Logistics DCSA (Digital Container Shipping Association) DHL Resilience360
Genpact GEP Honeywell Intelligrated
Infor Logility Magnitude Software
MPO Old Dominion Oliver Wight
OpenSky Ports America Purolator
QAD Precision Red Classic Riskmethods
TGW Systems Transportation Insights Watson Land Company
Westfalia Technologies Workjam Yang Ming
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright © 2016 - 2018 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing