Further delay in e-commerce policy roll-out may accentuate issues in digital mkt: Par panel

Any further delay in formulating and notifying a dedicated e-commerce policy may further accentuate the prevailing issues in India’s digital market, according to a Parliamentary panel report.

The report tabled on Friday urged the Centre to finalise the draft National E-Commerce Policy at the earliest. The department-related Parliamentary Standing Committee on Commerce in its report on the ‘Promotion and Regulation of E-Commerce in India’ observed that the absence of a dedicated e-commerce policy has resulted in a ‘strategy vacuum’ for the sector and ‘ineffective regulation’. Notably, the Committee said as the current regulatory framework is restricted to prevention and identification of sellers who have violated rules regarding Intellectual Property Rights, there exist gaps in enforcement mechanisms with regard to provision for imposing ex-post penalty on sellers who have violated the relevant rules.

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It recommended the Department for Promotion of Industry and Internal Trade to “develop appropriate mechanisms for enforcement of rules related to Intellectual Property Rights in e-commerce space in consultation with the relevant Ministries/Departments”. It also asserted that the online sale of medicines has not been regulated despite objections and concerns raised by stakeholders, and opined and reiterated its recommendation to the Ministry of Health and Family Welfare to notify E-Pharmacy Rules and formulate comprehensive guidelines with regard to e-pharmacy/e-health platforms.

Noting that the Draft National E-Commerce Policy is at the stage of inter-ministerial consultations and could not be finalised till date, the panel said “any further delay in formulating and notifying a dedicated policy may further accentuate the prevailing issues in the fast paced digital market”. The Committee also observed that delay in finalisation and passage of the Competition Amendment Bill might have ‘far reaching adverse and irreversible implications for competition in digital markets in India’. It recommended the Ministry of Corporate Affairs to take concerted efforts to finalise and get the bill enacted at the earliest.

The panel said necessary provisions should be incorporated in the amendment bill to empower and enable the Competition Commission of India as well as the Digital and Markets and Data Unit to effectively regulate the fast paced digital market taking into account the present day realities. The Competition (Amendment) Bill, which seeks structural changes in the governing structure of the Competition Commission of India (CCI), was introduced in the Lok Sabha in August last year. The CCI has in recent times ordered probes as well as passed various orders with respect to alleged unfair business practices in the growing digital market.