Amazon, Walmart Reel as India Curbs Plunge Market Into Chaos
- E-commerce restrictions took effect Friday, curtailing growth
- The two giants have spent billions on a major online arena
Amazon.com Inc. and Walmart Inc.’s grand plans for India were thrown into chaos on Friday after the country implemented new e-commerce regulations, which could cut their growth in the market by as much as half this year.
Prime Minister Narendra Modi’s government tightened rules for the retail giants after strident complaints from small shops and domestic sellers. Amazon and Walmart’s Flipkart are now banned from cutting exclusive arrangements with sellers, offering deep discounts or holding any business interest in online merchants on their websites. Thousands of products have already vanished from the virtual shelves of the duo, which together account for 70 percent of India’s online retail market. Arvind Singhal of consultancy Technopak Advisors Pvt, estimates their revenue growth could fall to 15 percent in coming months from 25 to 30 percent previously.