As more and more of our transactions take place within environments that are digital from end-to-end, the easier it is for us to embed regulations directly into the code that these environments are made of. To do that we will need to build governance modules into our digital public infrastructure.
In order to extract greater efficiency out of existing systems we sometimes need to break the atomic units of those systems down into even smaller pieces so that we can re-imagine how they can be put back together. This is the sort of unbundling that we need to do of the retail stack in order to be able to build a digital retail infrastructure that can empower our small traders. This is the only way we can enable hyperlocal commerce at national scale.
The courts in the US have upheld the App Store model arguing that it demonstrates pro-competitive features that outweigh concerns of monopolistic activity. All it does is prevent operators of these stores from putting in place measures that ensure that all in-app transactions be routed exclusively through the App Store so the fees can be deducted at source.
The proliferation of micro-entrepreneurs in India has been enabled by India’s radically unbundled e-commerce ecosystem. However, given the expansive wording of the new Consumer Protection (E-Commerce) Rules, the flourishing of this important ecosystem is threatened as the platforms enabling these entrepreneurs will have to comply with so many obligations as to make their operations commercially infeasible.
Apple built the its iOS mobile ecosystem with strict hardware and software controls. Google built Android to be a more laissez faire system. Google is now exerting greater control over its Play Store to restore trust in the Android ecosystem.
The internet has evolved from Sir Tim Berners-Lee’s original open vision to the current centralized platforms. It is important to promote decentralization and the Beckn protocol is an ambitious project aimed at creating an open, interoperable alternative to eCommerce platforms. Beckn’s success could revolutionize digital commerce, particularly in India, by allowing businesses to interact directly without platform intermediaries.
Competition law is challenged by the unique dynamics of internet platforms, which prioritize growth and customer lock-in over short-term profits. These platforms often operate at a scale that traditional businesses can’t match, and their data advantage allows them to tailor services precisely. While this leads to better user experiences, it also results in a winner-takes-all dynamic, limiting customer choice. Regulating these platforms is complex, as breaking them up might deny consumers the benefits they offer, and traditional competition remedies may not be applicable to the digital market.
Both Europe and India are looking to regulate e-commerce platforms. And while they have different approaches they agree on the need for an online dispute resolution process. As we build out these systems we should not just place a digital layer on top of existing dispute resolution methods. Instead we should take the opportunity to embed digital artefacts into the workflow that will conclusively establish whether contractual obligations have been performed.
The draft e-commerce policy released by the Indian government has been criticized for its broad and potentially harmful approach. It controversially claims collective ownership of data generated in India, suggesting state management over individual data rights. The policy misunderstands key technologies like AI, overemphasizes network effects, and ventures into unrelated domains like social media and taxation. Overall, it shows a lack of understanding of the sector it aims to regulate, which is disappointing for a technologically advanced nation like India.
The evolution of retail will feature a blend of online and offline shopping experiences. Yet physical stores will continut to be important. Amazon Go, a cashier-less store, combines the efficiency of online shopping with the tangible experience of brick-and-mortar stores.
