Bigger India
Amazon Food Biz To Log Off If New Rules Remain On Menu
This development follows the latest notification on ecommerce FDI, which prohibits marketplaces from selling affiliates’ products. It goes into effect on February 1.
Amazon’s food-only retail business will stop selling on Amazon.in if the government’s latest foreign direct investment (FDI) guidelines remain unchanged by next month.
This would be a blow for the initiative as Amazon was the only foreign retailer to have committed investment — to the tune of $500 million — in the food retail segment after it opened up in mid-2016. In addition, Amazon’s planned acquisition of a stake in Future Retail may be delayed, people familiar with the matter told ET.