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India’s new ruling means further obstacles for e-commerce heavyweights

India has introduced new regulations for foreign e-commerce platforms to operate in one of the fastest growing online markets, a potential blow to companies like Amazon.com Inc. and Walmart Inc.’s Flipkart.

Online marketplaces must treat all vendors equally by providing the same terms. In practice, this means not allowing e-commerce companies to force a seller to feature products exclusively on their platforms, and limiting ownership or control over the marketplace’s inventory.

This could mean that platforms, such as Amazon and Walmart, may not offer their own goods — such as the Echo smart speaker — at heavy discounts, and be forced to allow rivals the opportunity to sell previously proprietary products.

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