With reference to foreign-owned e-commerce firms operating in India, which of the following statements…
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:
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Solution
Under India's FDI policy, foreign-owned marketplace e-commerce entities cannot sell their own goods (must be neutral platforms). They are also limited in ownership stakes in sellers on their platforms.