Q. With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct?
1. They can sell their own goods in addition to offering their platforms as market-places.
2. The degree to which they can own big sellers on their platforms is limited.
Select the correct answer using the code given below:
Answer: B
Notes:
Exp) Option b is the correct answer.
After Walmart’s $16bn purchase of Flipkart in 2018, the rules for foreign-owned e-commerce firms were tightened further, with unexpected severity. Two restrictions predominate.
Statement 1 is incorrect: First, foreign firms are prevented from holding inventory or selling their own goods, which both Amazon and Walmart do in other markets. They can offer their platforms only as “marketplaces” for other buyers and sellers.
Statement 2 is correct: Second, the degree to which they can own big sellers on their platforms is limited, to prevent those sellers acting covertly on their behalf.
Source) https://www.economist.com/business/2021/04/24/amazon-and-walmart-confront-indian-politics
