Govt is considering framing an e-commerce policy, says Suresh Prabhu

Union Minister for Commerce & Industry and Civil Aviation Suresh Prabhu | Photo: PTI

The government is considering framing an e-commerce policy, Commerce and Industry Minister Suresh Prabhu told Parliament Monday.

No deadline, however, has been fixed for the policy formulation, he said further.

Stakeholder consultations on 'Framework for National Policy on e-Commerce' with representatives from government ministries, RBI, industry bodies, e-Commerce companies, telecom and IT companies and payment companies were held in April and July this year, Prabhu said in a written reply to the Lok Sabha.

"The formulation of e-Commerce policy in under consideration of the government for which no timeline has been fixed," he said.

The minister was responding to a question related to the time by which the draft e-Commerce policy is likely to be put in place along with details of two rounds of stakeholder consultations done so far.

On the regulatory aspects, Prabhu said e-commerce activities are governed by relevant acts/regulations in the country including Information Technology Act, Companies Act and Consumer Protection Act.

E-Commerce companies with foreign direct investment are also governed by the Foreign Exchange Management Act.

The e-Commerce sector in India also falls under the purview of the Competition Act, he added.

"It lays down the framework for regulating anti-competitive agreements, including vertical restraints. The conduct of certain e-Commerce players who enjoy a position of dominance in the relevant market may also be brought under the radar of Indian competition law if they abuse their dominant position," the minister informed the lower house.

Besides, proposed merger or amalgamation of e-Commerce firms whether in India or off-shore which may have an impact on the competition in India, remains liable for notification under the law, if they fall within the thresholds prescribed under the Act, he added.


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel