Likely e-comm regulator to put marketplaces on a sticky wicketWhat's the news?
The Consumer Protection Bill 2019, which was passed by Parliament on Tuesday, paves the way for a regulator that could haul up ecommerce companies such as Amazon and Walmart-owned Flipkart if they influence pricing, unfairly promote products or misrepresent the quality of goods and services sold on their platforms. The regulator will also have the power to initiate class action against companies including enforcing recalls, refunds and returns.
Why it matters?
Experts said the Bill's passage could put ecommerce marketplaces on a sticky wicket as they would be restricted from influencing pricing and forced to disclose seller details on their websites and apps, which they have not done so far despite it being a requirement under FDI rules for the sector.
The other major issue that could hurt ecommerce businesses is a clampdown on sale of counterfeits online. Industry insiders admit that fake products continue to drive a sizeable chunk of sales at online marketplaces despite their best efforts to weed it out from their platforms. Read more
SoftBank scouts for next phase of innovation in India What's the news?
SoftBank is closely evaluating the mobility sector in India, including the two-wheeler mobility space, multiple people familiar with the matter told ET, as the Japanese investment powerhouse scouts for the next phase of innovation after ride hailing.
Why it matters?
In India, which is the largest two-wheeler market in the world, SoftBank’s move beyond ride-hailing could be a bet on the emerging two-wheeler rentals business. Its interest in the new mobility space can be gauged through its two investments in peer-to-peer car rental service Getaround and vehicle leasing platform Fair, both in the US. SoftBank invested $300 million in Getaround in August last year, followed by leading a $385 million investment in Fair in December. ET has learnt that the Japanese firm has had engagements with companies such as Bounce, Vogo and Drivezy, though no investment plans are in the pipeline yet. Read more
Only TCS, Infosys among top 10 US green card application listWhat's the news?
Only two Indian companies - Tata Consultancy Services and Infosys - figure in a list of the top ten applicants for employer green cards in the six months to March 2019, a review of US government data shows.
Why it matters?
Currently, it takes an Indian applicant more than eight years to receive permanent resident status. It is estimated that up to 300,000 Indians could benefit if the Fairness for High-Skilled Immigrants Act or HR 1044 is passed by the US Senate. The bill, which has been passed by the House of Representatives, has faced resistance from some quarters as it does away with country caps on green cards.
“While companies have used this as a way of retaining talent, they are starting to shy away from it as it is a more expensive process and also takes very long. Not many people expect that the Senate will pass the HR 1044 Bill as it has a Republican majority, so things are unlikely to change anytime soon,” said Vivek Tandon, CEO, EB5 BRICS, a visa consultancy firm. Read more
Tech firms concerned over proposed data protection billWhat's the news?
Technology companies have expressed concern over a delay in introducing the Personal Data Protection Bill in Parliament, and a lack of clarity about its contents.
Why it matters?
The contentious proposal of data localisation had raised hackles, with US technology companies protesting and the American government calling it "discriminatory and trade-distortive".
Although a committee led by Justice B N Srikrishna, a former judge of the Supreme Court, submitted its report and the draft Bill to the government in July last year, it has yet to be sent to the Cabinet for approval. Talks of a rift between policymakers over its contents and whether there needs to be fresh consultations has added to the uncertainty. The government had said it would take up the bill on priority in its second term. Read more
How India is benefiting from the US-China trade warWhat's the news?
India appears to have already started to benefit from the US-China trade war. US telco major AT&T along with rivals T-Mobile and Sprint have placed smartphone orders worth around Rs 2,500 crore for under-$200 devices with Indian brands Lava and Micromax, in a bid to de-risk their business as Sino-US trade tensions show no signs of abating, people familiar with the matter said.
Why it matters?
Over 250 companies-American, Japanese, Taiwanese and Korean-are looking at relocating to India from China, in the middle of the growing trade tensions between the two partners. Also, a committee set up by the Prime Minister's Office (PMO) under the Niti Aayog chairman is considering ways to promote electronic manufacturing by looking at ways to offer India as a manufacturing destination vis-a-vis countries like Vietnam.
The development coincides with the trade talks between the world's two largest trading partners deteriorating with the US slapping additional trade tariffs on $300 billion worth Chinese imports last week, calling the Chinese slow to move on trade talks. Read more