Growing regulatory scrutiny awaits e-commerce firms

IN 2025, e-commerce giants like Amazon and Flipkart are expected to face intensified regulatory oversight as the government strengthens measures to safeguard competition and protect consumer data.

- RAGHAV AGGARWAL

Key legislative changes, including the implementation of the Digital Personal Data Protection (DPDP) Act and the upcoming Digital Competition Bill, are set to reshape the operational landscape for these companies.

The Competition Commission of India (CCI) is already investigating Amazon and Flipkart over allegations related to favouring select sellers on their platforms. The Enforcement Directorate (ED) sometime back conducted raids across 19 locations, on reports that these companies maintain prohibited control over seller inventories. Regulations mandate e-commerce platforms to function solely as marketplaces, without directly holding inventory.

Pricing practices have also come under scrutiny. Commerce and industry minister, Piyush Goyal criticised Amazon's significant financial losses, suggesting they may be indicative of predatory pricing tactics designed to stifle competition.