Bengaluru, July 12: For the first time, the Indian government has asked for clarification from the e-commerce companies on how they function. Giants in this space like Flipkart, Amazon and Snapdeal are in the process of submitting detailed reports to the ministry of commerce and industry, explaining their company structures and business operations in India, according to an Economic Times news report. Flipkart Opens Second Data Centre in Hyderabad For Strengthening Technology Infrastructure - Report.
This comes on the back of several complaints being made by sellers and other rival players about how the online commerce firms are allegedly violating laws that govern the sector.
Details which these firms have to provide are- how many warehouses they are running, the number of sellers they work with, and other investments in India. According to the report, Flipkart and Snapdeal have already made their submission and Amazon is in the process of doing so.
On June 24, Piyush Goyal met 25 internet and e-commerce firms and the Minister instructed all the parties present to submit a detailed report explaining how their companies operate.