gs1medium
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.
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
▶ Answer & Explanation
Correct answer: D. Neither 1 nor 2
Foreign-owned e-commerce companies are generally permitted to operate as marketplace providers, connecting buyers and sellers. However, they are restricted from directly selling their own goods or inventory on these platforms. Furthermore, regulations limit their ability to control or hold significant stakes in the sellers listed on their marketplaces to ensure a level playing field and prevent monopolistic practices.
Source: UPSC gs1 2022