{"id":207797,"date":"2022-09-26T17:56:53","date_gmt":"2022-09-26T12:26:53","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=207797"},"modified":"2022-09-26T17:56:53","modified_gmt":"2022-09-26T12:26:53","slug":"open-networks-are-good-but-only-if-they-are-regulated","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/open-networks-are-good-but-only-if-they-are-regulated\/","title":{"rendered":"Open networks are good but only if they are regulated"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cOpen networks are good but only if they are regulated\u201d <\/strong>published in Livemint <\/b>on\u00a026th\u00a0<\/sup>September 2022<\/strong>.<\/p>\n

Syllabus<\/strong>: GS 3 – Changes in industrial policy and their effects on industrial growth.<\/span><\/p>\n

Relevance<\/strong>: To understand the need for ONDC.<\/p>\n

News<\/strong>: The Open Network for Digital Commerce (ONDC) is being hailed as India\u2019s next digital leap forward. It is expected to revolutionize e-commerce, much like what the Unified Payments Interface (UPI) did for Indian payments.<\/p>\n

What is ONDC?<\/span><\/h5>\n\n\n\n
Must read:\u00a0Open Network For Digital Commerce (ONDC) \u2013 Explained, pointwise<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
What is the need for ONDC?<\/span><\/h5>\n

During the pandemic, the government found that a)<\/strong> A large percentage of the domestic retail trade was found to be digitally excluded, b)<\/strong> India has a large supply chain break-down, c) <\/strong>Digital commerce in India is dominated by two foreign companies. Further, ongoing investigations against these two companies in the Competition Commission of India stressed the need for a custom-built approach to take on these companies and d)<\/strong> To resolve the challenges faced by small traders and shopkeepers due to demonetization, the introduction of GST and digital trade during lockdowns.<\/p>\n

Further, the Success of the UPI during the pandemic forced the government to find a similar \u201cpublic good\u201d for digital commerce.<\/p>\n\n\n\n
Read more:\u00a0ONDC is the disruption Indian commerce needs<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
What should be done to make ONDC a neural platform?<\/h5>\n

Make the platform-neutral<\/strong>: ONDC should function as a neutral platform, helping neither the buyer nor the seller. ONDC\u2019s task should be generating trust that every player will have to be treated equally.<\/p>\n

The government should not allow political agenda to take place within ONDC. For instance, a political party has decided to launch its own e-commerce app (called Bharat e-Market) on ONDC. These things should be avoided.<\/p>\n

Proper regulation<\/strong>: In the UPI space, without proper regulation, two largest players in the UPI space\u2014PhonePe and G-Pay\u2014have ended up controlling over 80% of the market. So, the regulation of ONDC cannot be left to the company.<\/p>\n

A nominally independent or autonomous body will have to lay down the ground rules, monitor conduct on the platform and weed out any indications of dominance.<\/p>\n

Need clarification<\/strong>: The government need to clarify the incentives that exist for private players to shift their network of suppliers and buyers to ONDC.<\/p>\n\n\n\n
Read more: Our open network for digital commerce must win trust<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cOpen networks are good but only if they are regulated\u201d published in Livemint on\u00a026th\u00a0September 2022. Syllabus: GS 3 – Changes in industrial policy and their effects on industrial growth. Relevance: To understand the need for ONDC. News: The Open Network for Digital Commerce (ONDC) is being hailed as… Continue reading Open networks are good but only if they are regulated<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501],"class_list":["post-207797","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704899563},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/207797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=207797"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/207797\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=207797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=207797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=207797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}