Parliamentary Standing Committee Report on E-commerce
Recently the Parliamentary Standing Committee on Commerce has submitted the report on ‘Promotion and regulation of e-commerce in India’.
The report recommends a clear definition on the e-commerce model. At the same time, it has also been recommended to ensure that marketplaces do not indulge in an inventory based model.
Inventory Model: This is an e-commerce activity in which inventory of goods and services is owned by an e-commerce entity and sold directly to consumers.
Marketplace Model: In this model an e-commerce company provides a digital platform over a digital and electronic network. The platform acts as a facilitator between the buyer and seller. Like- Amazon, Flipkart etc.
Key findings and recommendations of the committee
Key Issues:
- A large segment of the market is seen to be controlled by only a few digital platforms.
- These platforms are violating foreign direct investment (FDI) norms. Also resorting to anti-competitive/unfair practices, such as over-discounting, misuse of available data, etc.
Key Challenges:
- Digital reach of micro, small and medium enterprises (MSMEs),
- Infringement of intellectual property rights,
- Lack of data usage policy etc.
Key Recommendation
- Compulsory registration of e-commerce companies with the Department for Promotion of Industry and Internal Trade (DPIIT) should be done.
- A comprehensive framework should be put in place to regulate e-commerce. This framework should be included in the national e-commerce policy.
- Enforcement mechanism under FDI policy should be strengthened for proactive action against violators.
- The Digital Markets section may be created to address regulatory loopholes.
- The Personal Data Protection Bill 2019 must be passed. In addition, a separate framework should be created for the regulation of personal and non-personal data.
Source- The Hindu
