Domestic e-commerce firms oppose extension of Feb 1 deadline
Snapdeal, ShopClues, others write to DIPP, commerce ministry forming anti-Flipkart, Amazon alliance. Domestic E -commerce companies Snapdeal and ShopClues , social commerce startups including Shop101 , and a bunch of online-only brands have come together to oppose any extension of a February 1 deadline for online marketplaces to comply with FDI rules. This is the first time smaller online retailers have voiced their concerns to the government after last month’s review of norms on issues such as inventory and price control and equity ownership in vendors, which have hit their biggest rivals – Amazon and Flipkart – the most. Many of these companies have written to the Department of Industrial Policy and Promotion and commerce minister Suresh Prabhu, lauding the government for clarifying the rules on foreign direct investment in the e-commerce sector. The government’s Press Note 2 issued in December bars online marketplaces and their group companies f...