For years, brick-and-mortar Indian merchants have accused Flipkart and Amazon of breaching the foreign investment rules by favoring certain vendors and influencing the prices of forbidden items. The businesses claim to follow all laws.

Because offline merchants in India continue to be unsatisfied with exploitative activities by e-commerce giants like Amazon and Flipkart, the Indian government has decided to modify e-commerce rules.

According to the Ministry of Consumer Affairs, Food and Public Distribution's new proposed regulations, e-commerce firms may be barred from conducting flash deals.