Officials said the meeting aims to factor in issues of important national consideration in the e-commerce policy that seeks to set up a regulator for the sector and implement a new law to restrict the data e-commerce entities can store, use, transfer, process and analyse.
“The meeting on Saturday is about the policy. There is a thought that important national considerations need to be factored in it,” said an official, adding that promotion of exports through e-commerce is a key area.
stakeholder consultation DPIIT to meet industry over FDI in ecommerce on March 17
There was an idea to drop the proposed policy in January after certain sections within the government questioned its rationale and there was a lack of convergence on issues related to the role and reach of the regulator, provisions relating to consumer data protection in the policy, overlaps with other legislation and categories of data that require mirroring.
Officials from the ministries of electronics, external affairs, finance, and micro, small & medium enterprises, besides Niti Aayog are expected to participate in the meeting.
As for the meeting on March 17, industry sources said Press Note 2, which stipulates that the inventory of a vendor will be deemed to be controlled by the marketplace if more than 25 per cent of the vendor’s purchases are from the marketplace entity, is likely to be discussed.
The DPIIT is working on issuing clarifications through a Press Note with provisions that prohibit them from holding an indirect stake in a seller through its parent as there are concerns that some ecommerce companies are not following the rules and hold indirect stakes in affiliates.
Press Note 2 of 2018 stipulates that the inventory of a vendor will be deemed to be controlled by the marketplace if more than 25 per cent of the vendor’s purchases are from the marketplace entity, including its wholesale unit. The marketplace entity or its group companies cannot have control over inventory under the FDI rules.
Officials had earlier said the department would do industry consultations with all stakeholders before it issues the clarification especially because the 25 per cent definition is not effective and a clarity needs to be given.