India Tightens E-commerce Rules, Likely to Hit Amazon, Flipkart

A site of the Amazon electronic commerce company was showed on April 11, 2015 in Lauwin-Planque, northern France. AFP PHOTO PHILIPPE HUGUEN Photo credit should read PHILIPPE HUGUEN/AFP/Getty Images

NEW DELHI/MUMBAI—India will ban e-commerce companies such as Amazon.com and Walmart-owned Flipkart Group from selling products from companies in which they have an equity interest.

In a statement, the government also said that the companies will be prevented from entering into exclusive agreements with sellers. The new rules will be applicable from Feb. 1.