India's ASSOCHAM cautions against e-com over-regulation

Entrepreneurship may be stifled if the e-commerce sector is over-regulated, according to the Associated Chambers of Indian Industry (ASSOCHAM), which cautioned the government against micro-managing prices. E-commerce and the entire online space is a fledgling area of business with a vast scope for expansion, ASSOCHAM Secretary General D S Rawat said.

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An initial draft circulated among stakeholders for discussion to frame a national e-commerce policy has suggested introduction of a pre-set timeframe for offering differential pricing or deep discounts by e-commerce players, according to a news agency report.

The suggestions are part of the strategy to effectively address anti-competitive issues in the e-commerce sector.

A sunset clause, which defines the maximum duration of differential pricing strategies that are implemented by e-commerce platforms to attract consumers, would be introduced, according to the draft.

Rawat, however, feels deep discount or no discount is a purely commercial decision and should be the prime concern of the promoters, venture capitalists and private equity funds betting on online entrepreneurs. 

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