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With reference to the ‘new FDI policy for e-commerce’ implemented from February 1, 2019, which of the following statements is not true?
  • a)
    Now e-commerce companies will not be able to enter into exclusive sales agreements with sellers.
  • b)
    Now e-commerce companies will not be able to sell products from companies in which they have an equity interests.
  • c)
    With the view to promoting competition, e-commerce companies are free to offer attractive discounts or cash-back offers.
  • d)
    This policy will limit the extent of discounts and cashbacks offered by these companies.
Correct answer is option 'C'. Can you explain this answer?
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PASSAGE IIIThe need for Competition Law becomes more evident when foreign direct investment (FDI) is liberalised. The impact of FDI is not always pro-competitive. Very often FDI takes the form of a foreign corporation acquiring a domestic enterprise or establishing a joint venture with one. By making such an acquisition the foreign investor may substantially lessen competition and gain a dominant position in the relevant market, thus charging higher prices. Another scenario is where the affiliates of two separate multinational companies (MNCs) have been established in competition with one another in a particular developing economy, following the liberisation of FDI. Subsequently, the parent companies overseas merge. With the affiliates no longer remaining independent, competition in the host country may be artificially inflated. Most of these adverse consequences of mergers and acquisitions by MNCs can be avoided if an effective competition law is in place. Also, an economy that has implemented an effective competition law is in a better position to attract FDI than one that has not. This is not just because most MNCs are expected to be accustomed to the operation of such a law in their home countries and know how to deal with such concerns but also that MNCs expect competition authorities to ensure a level playing field between domestic and foreign firms.Q. With reference to the passage, consider the following statements:1. It is desirable that the impact of Foreign Direct investment should be pro-competitive.2. The entry of foreign investors invariably leads to the inflated prices in domestic markets.Which of the statements given above is/are correct?

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With reference to the ‘new FDI policy for e-commerce’ implemented from February 1, 2019, which of the following statements is not true?a)Now e-commerce companies will not be able to enter into exclusive sales agreements with sellers.b)Now e-commerce companies will not be able to sell products from companies in which they have an equity interests.c)With the view to promoting competition, e-commerce companies are free to offer attractive discounts or cash-back offers.d)This policy will limit the extent of discounts and cashbacks offered by these companies.Correct answer is option 'C'. Can you explain this answer?
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With reference to the ‘new FDI policy for e-commerce’ implemented from February 1, 2019, which of the following statements is not true?a)Now e-commerce companies will not be able to enter into exclusive sales agreements with sellers.b)Now e-commerce companies will not be able to sell products from companies in which they have an equity interests.c)With the view to promoting competition, e-commerce companies are free to offer attractive discounts or cash-back offers.d)This policy will limit the extent of discounts and cashbacks offered by these companies.Correct answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to the ‘new FDI policy for e-commerce’ implemented from February 1, 2019, which of the following statements is not true?a)Now e-commerce companies will not be able to enter into exclusive sales agreements with sellers.b)Now e-commerce companies will not be able to sell products from companies in which they have an equity interests.c)With the view to promoting competition, e-commerce companies are free to offer attractive discounts or cash-back offers.d)This policy will limit the extent of discounts and cashbacks offered by these companies.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the ‘new FDI policy for e-commerce’ implemented from February 1, 2019, which of the following statements is not true?a)Now e-commerce companies will not be able to enter into exclusive sales agreements with sellers.b)Now e-commerce companies will not be able to sell products from companies in which they have an equity interests.c)With the view to promoting competition, e-commerce companies are free to offer attractive discounts or cash-back offers.d)This policy will limit the extent of discounts and cashbacks offered by these companies.Correct answer is option 'C'. Can you explain this answer?.
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