MUMBAI – The Indian government has warned local Amazon.com and Walmart’s Flipkart that sellers of their platforms do not follow a rule requiring the country of origin of the product.
The push to enforce the rule came amid tensions between India and China following a border clash that began in June and is part of India’s efforts to reduce Chinese imports.
The two e-commerce companies have been given 1
|WMT||WALMART INC.||144.71||+0.18||+ 0.12%|
GM FACES UNEXPECTED ACCOUNTS AS INDIA-CHINA STRESSES DELAY PLANT SALES IN INDIA
He did not specify what action could be taken, referring only to a legal act which has provisions on fines.
Representatives from Amazon and Flipkart did not immediately respond to Reuters’ requests for comment outside of regular business hours.
GET THE FOX BUSINESS, CLICK HERE
In addition to enforcing the country of origin rule, New Delhi has also banned 177 Chinese mobile applications since June, while Chinese goods in ports face additional controls and delays.
Amazon often faces regulatory challenges in India. Last year, the government imposed strict rules on foreign investment in e-commerce, forcing the US retail giant to redesign its business structures and strained ties between New Delhi and Washington.
In January, the Indian Competition Commission ordered an investigation by Amazon and Flipkart into alleged breaches of competition law and certain discounting practices that Amazon is challenging, according to the lawsuits.