A lobby group of the United States Chamber of Commerce, US-India Business Council's (USIBC's) objection to India's proposed amendments to the e-commerce rules have stirred up a controversy with trade bodies such as the Confederation of All India Traders (CAIT) condemning the lobby group's statements. However, it has also brought forthwith the question of what would happen if e-commerce entities, which now face stricter regulation because of the proposed rules, do not comply with it. It is important to see this from the prism of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, and what have been the effects of non-compliance with the rules for certain social media platforms. Twitter, for instance, has been involved in a tussle with the Indian government over this issue for about a month now, and WhatsApp has moved an Indian court challenging the rules. MediaNama reached out to a few legal experts regarding the possible outcome of non-compliance to the e-Commerce Rules 2020, and they all had a similar point to share: Yes, the rules bring in stricter regulation for e-commerce entities, and are in some aspects similar to the IT Rules 2021. However, companies have to either comply with the Rules whether they like it or not (because a rollback is unlikely) or move the courts for a solution. However, first, before we go into the matter in detail, what do the proposed e-commerce rules say and why was it opposed by USIBC? The proposed rules include — New rules…
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