Amazon hit badly by new India e-commerce rules

The introduction of new e-commerce rules in India has led to widespread disruption on Amazon’s local site which was forced to take down its grocery service as well as remove a number of products such as sunglasses and floor cleaners from its store.

India’s new regulations went into effect at midnight on Thursday and the US e-commerce giant began removing products a few hours ahead of the deadline.

Back in December, the country changed its foreign direct investment rules for its growing e-commerce sector and the move has drawn fire from Amazon as well as Walmart as the companies look to expand their online presences in India.

The new e-commerce investment rules prohibit online retailers from selling products from vendors in which they have an equity interest and making deals with sellers to sell exclusively on a platform is no longer allowed as well.

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