News Update

Centre may roll out e-com policy without data norms

• ByAyushi Ray     |    August 27, 2021

Centre may roll out e-com policy without data norms, the policy will also stay clear of the controversial data localization rules, as these will be separately handled by the Reserve Bank of India and the upcoming bill pending before Parliament. An earlier version of the draft e-commerce policy leaked in 2008, which had proposed to include data rules, was junked after stiff opposition from the industry. A recent version accessed by Mint in March this year showed the commerce ministry intends to bring in regulations that would prevent the formation of digital monopolies and facilitate e-commerce exports.

The latest version is expected to focus on regulatory aspects of e-commerce, including foreign direct investment policy and a possible local regulator for the sector, and may also clarify India’s international position on e-commerce negotiations. “We are not waiting for the data protection bill to be passed, but data issues will be handled by the proposed law. We will just mention that e-commerce companies need to adhere to the data protection law as well as data localization regulations by the Reserve Bank of India,” said an anonymous source. The proposed e-commerce policy is different from the draft rules for e-commerce marketplaces recently notified by the consumer affairs ministry under consumer protection laws. These rules came after small businesses complained that online marketplaces were misusing market dominance and resorting to deep discounting.

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