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With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct? 1. They can sell their own goods in addition to offering their platforms as marketplaces. 2. The degree to which they can own big sellers on their platforms is limited. Select the correct answer using the code given below:

UPSC · 2022 · Economy
Question:
With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct? 1. They can sell their own goods in addition to offering their platforms as marketplaces. 2. The degree to which they can own big sellers on their platforms is limited. Select the correct answer using the code given below:

Options

1 only
2 only
Both 1 and 2
Neither 1 nor 2
Answer: 2 only

Explanation:
Foreign e-commerce entities in India can only operate as marketplaces and cannot sell their own inventory. They also face ownership restrictions on associated sellers.

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