<h1>India Tightens E-commerce Rules: Foreign Firms Limited to Marketplace Model, Under Investigation for Anti-Competitive Practices.</h1> The Government of India aims to boost its digital economy by promoting e-commerce, but restricts foreign-invested companies to a marketplace model, prohibiting inventory-based operations. To clarify regulations, the Department for Promotion of Industry and Internal Trade (DPIIT) issued Press Note 2 of 2018, emphasizing fair competition and prohibiting e-commerce entities from influencing prices. Allegations of predatory pricing and excessive discounts have led to an investigation by the Competition Commission of India against major platforms for potentially anti-competitive practices. The Minister of Commerce and Industry confirmed these developments in a recent parliamentary session.