India’s plan to develop Open Network for Digital Commerce (ONDC) is not good news for already knackered global e-commerce giants Amazon, Walmart’s Flipkart. The e-tailers have their plates full with a range of problems including an ongoing antitrust probe, a proposed prohibition on flash sales, and perennial opposition from various traders’ bodies.
Government may consider establishing an independent regulatory authority for e-commerce. ONDC aims at promoting open networks developed on open-sourced methodology, using open specifications and open network protocols independent of any specific platform. Union minister Piyush Goyal said that ONDC will create new opportunities and remove monopolistic environments.
“ONDC will enable the consumers to match demand with the nearest available supply. This would also give consumers the liberty to choose their preferred local businesses. Thus, ONDC would standardize operations, promote inclusion of local suppliers, drive efficiencies in logistics and lead to enhancement of value for consumers,” minister of state for commerce and industry Som Prakash told Lok Sabha.