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During a visit to India in 2014, Amazon chief executive Jeff Bezos made a splashy announcement: His firm was investing $2 billion in the South Asian nation, just a year after beginning operations in the country.
Amazon’s announcement underscored how far India had come to open up to foreign firms. The nation, which had largely kept doors shut to international giants between its independence in 1947 to liberalization in 1991, has slowly transformed itself into the world’s largest open market.
In a televised interview in 2014, Bezos said that there was a perception about India not being an easy place to do business. But Amazon’s growth in the country, he said, was proof that this belief is not accurate.
“Are there obstacles? There are always obstacles. Anywhere you go, every country has its own regulations and rules,” he said.
Six years, and more than $4.5 billion of additional investments later, Amazon today appears to be facing more obstacles than ever in India, the second-largest internet market with more than 600 million users.
Long-standing laws in India have constrained Amazon, which has yet to turn a profit in the country, and other e-commerce firms to not hold inventory or sell items directly to consumers. To bypass this, firms have operated through a maze of joint ventures with local companies that operate as inventory-holding firms.
India got around to fixing this loophole in late 2018 in a move that was widely seen as the biggest blowback to the American firm in the country at the time. Amazon and Walmart-owned Flipkart scrambled to delist hundreds of thousands of items from their stores and made their investments in affiliated firms way more indirect.
Now the nation is set to further toughen this approach. Reuters reported last week that New Delhi is considering making adjustments to some provisions that would prevent affiliated firms to hold even an indirect stake in a seller through their parent.
The Confederation of All India Traders, an Indian trade body that claims to represent over 80 million businesses, told the publication that Indian Commerce Minister Piyush Goyal has assured the organization that it is working to shortly address concerns about alleged violations of current rules.
The forthcoming policy change is only one of the many headaches for the world’s largest e-commerce firm in India.
Offline retailers in India have long expressed concerns about what they allege to be unfair practices employed by Amazon in India. Last year, during Bezos’ visit to the country, they held several protests. (Photo by SAJJAD HUSSAIN/AFP via Getty Images)
Amazon is aggressively fighting a battle to block a deal between its estranged partner Future Group and Reliance Retail, the two largest retail chains in India.
Last year, Future Group announced that it would sell its retail, wholesale, logistics and warehousing businesses to Reliance Retail for $3.4 billion. Amazon, which in 2019 bought stakes in one of Future Group’s unlisted firms, says that the Indian firm has breached its contract (which would have given Amazon the right to first refusal) and engaged in insider trading.
Despite technology giants and investors ploughing more than $20 billion to create an e-commerce market in India in the past decade, online retail still accounts for only a single-digit pie of all retail in the country.
In recent years, Amazon, Walmart and scores of other startups have embraced this realization and sought to work with neighborhood stores that dot tens of thousands of cities, towns and villages in India.
With Reliance Retail and telecom giant Jio Platforms, two subsidiaries of one of India’s largest corporates (Mukesh Ambani’s Reliance Industries) entering the e-commerce market, and receiving the backing of global giants including Facebook and Google last year, cornering a big stake in Future Group is one of the few ways Amazon can accelerate its growth in India.
The American e-commerce firm has had little luck so far in overturning the deal between the Indian firms. Last year, Amazon reached out to Indian antitrust body Competition Commission of India, and market regulator SEBI to block this transaction. Both the bodies have ruled in favor of Future Group and Reliance Retail.
Amazon must have foreseen this outcome because it initiated the legal proceedings at an arbitration court in Singapore. It’s no surprise that the firm chose to also pursue its legal argument outside of India.
Most cases that reach the Singapore International Arbitration Court have come from India in recent years. Vodafone, which has invested more than $20 billion in India, and has been dealt with billions of dollars in unpaid taxes by the country, is another high-profile name to have knocked on the door in Singapore. After losing in India, it emerged victorious in the Singapore arbitration court last year.
Amazon on Monday filed a new petition in Delhi High Court in which it is seeking to enforce SIAC’s ruling (which ordered last year that the deal should be temporarily halted) and prevent the Indian firm from going ahead with the deal based on CCI and SEBI’s judgements.
The company alleges that Future Group “deliberately and maliciously” disobeyed the international arbitration ruling from SIAC. In its petition, Amazon is also seeking detention of Kishore Biyani, the founder and chairman of Future Group.
“Vocal for Local”
As India grappled with containing the spread of the coronavirus last year, India’s Prime Minister Narendra Modi urged the 1.3 billion citizens to make the country “self-reliant” and “be vocal for local.”
The move to turn inwards contrasts with his major promise in the first few years of assuming power in 2014 when he pledged to make India more welcoming to foreign firms than before. In recent years, India has proposed or enforced several regulations that hurt American firms, though none appear to suffer as much as Amazon.
Last year, New Delhi started to enforce a 2% tax on all foreign billings for digital services provided in the country. The U.S. Trade Representative said earlier this month that India was taxing numerous categories of digital services that are “not leviable under other digital services taxes adopted around the world.”
The aggregate tax bill for U.S. companies could exceed $30 million per year in India, USTR’s investigation found. In conclusion, it found India’s digital tax move to be inconsistent with international tax principles, unreasonable and burdening or restricting U.S. commerce.
Modi’s new way of life for India will be music to the ears of Mukesh Ambani, the chairman of Reliance Industries, an ally of the prime minister and India’s richest man.
Before selling stakes worth over $20 billion in Jio Platforms and more than $6 billion in Reliance Retail to marquee foreign investors, Ambani famously made a speech in 2019 in which he urged the need to protect Indians’ data in patriotic terms.
“We have to collectively launch a new movement against data colonization. For India to succeed in this data-driven revolution, we will have to migrate the control and ownership of Indian data back to India — in other words, Indian wealth back to every Indian,” he said.
Why so many international firms have invested in one of Reliance’s properties remains a big question. A senior executive at an American firm told TechCrunch on the condition of anonymity (out of fear of retribution) that the investments in Jio Platforms, which is India’s largest telecom network with nearly 410 million subscribers, and Reliance Retail is a déjà vu moment for the nation, where a few decades ago one of the only ways to do business in the nation was to partner with a local firm with massive political clout.
In a series of tweets, Raman Chima, a former policy executive at Google and who now works at nonprofit digital advocacy group Access Now, alleged that the Android-maker had weighed in 2011-12 partnering and investing in a firm like Reliance to “turn-the-page on Indian political risks.”
The idea prompted concerns about Google’s values, he claimed. “More than one executive involved in those discussions flagged concerns around Reliance’s reputation, particularly around problematic approaches towards gaining influence with policymaking civil servants and politicians, money, ethics in govt-business relationships.”
Amazon itself was rumored to be interested in getting a multi-billion-dollar stake in Reliance Retail last year, but it appears the two firms have stopped engaging on any matter.
BJP MLA Ram Kadam and his party workers protest against the Amazon Prime web series Tandav outside Bandra-Kurla Police station, on January 18, 2021 in Mumbai, India. (Photo by Pratik Chorge/Hindustan Times via Getty Images)
While Amazon sorts out these issues, last week delivered another blow to the firm. A senior executive with the firm as well as Indian makers of a mini-series for Amazon Prime Video are under threat of criminal prosecution in the country after Modi’s ruling party deemed the show offensive to the country’s Hindu majority.
A Hindu nationalist group, politicians with the ruling Bharatiya Janata Party, and a BJP group representing members of India’s lower castes, were among those who had filed police reports against the nine-part mini-series “Tandav” and Amazon. The company bowed to the pressure and edited out some scenes.
“The true reason for the complaints against ‘Tandav’ may be that the show holds up a mirror uncomfortably close to Indian society and some of the problems blamed on Mr. Modi’s administration. In the opening episode, the show features protesting students and disgruntled farmers, echoing events that have taken place in recent months,” The New York Times wrote.
“Mirzapur,” another show of Amazon, also attracted a criminal complaint in India last week for hurting religious and regional sentiments and defaming the Indian town. The Indian Supreme Court has issued notices to the makers of “Mirzapur” and has sought responses.
In the aforementioned interview, Bezos said Amazon’s job was to follow all the unique rules various countries require it to comply with and “adapt our business practice to those rules.”
In India, the company is increasingly being asked how far it is willing to adapt its business practice. How far is it willing to bend that it’s no longer the Amazon people cared for.
Source: https://techcrunch.com/2021/01/25/india-plays-hardball-with-amazon/
Blackberry and Chinese search engine giant Baidu have agreed to expand a partnership that aims to give automakers the tools they need to launch next-generation connected and autonomous vehicles in China.
Under the deal, Baidu’s high-definition maps will be integrated into Blackberry’s QNX Neutrino Real-Time Operating System. The embedded system will be mass produced in the upcoming GAC New Energy Aion models from the electric vehicle arm of GAC Group, one of the country’s top three automakers that produces more 2 million vehicles a year.
The aim of this new, expanded partnership is to “provide car manufacturers with a clear and fast path to the production of autonomous vehicles, with safety and security as the top priority,” according to a statement from Wang Yunpeng, senior director of the technology department of Baidu’s Intelligent Driving Group.
The partnership between Baidu and Blackberry is notable because it inserts a foreign operating system into Chinese-made vehicles even as the government there has called for native tech.
Blackberry’s QNX software handles the functional safety, network security and reliability pieces, while Baidu has invested in the development of artificial intelligence and deep learning.
“Together, we can help car manufacturers quickly produce safe autonomous vehicles and promote the development collaboratively of the intelligent networked automobile industry,” Yunpeng said.
Blackberry, once the dominate force in the smart phone industry, has found success getting its QNX technology into vehicles. Today, the software is used in the advanced driver assistance, digital instrument clusters and infotainment systems of more than 175 million vehicles.
The agreement builds on the two companies January 2018 agreement to make BlackBerry QNX’s operating system the foundation for Baidu’s ‘Apollo’ autonomous driving open platform.
The deal with Baidu also helps Blackberry continue to carve out market share in China, where it’s a more recent entrant. Last year, Blackberry announced QNX would be integrated into Tesla rival Xpeng’s electric vehicles in China.
“With BlackBerry QNX’s embedded software as its foundation, Baidu has made significant progress as part of its Apollo platform in establishing a commercial ecosystem for innovative technologies that OEMs can leverage for their next generation vehicles,” Dhiraj Handa, vice president of channel, partners and APAC, BlackBerry Technology Solutions, said in a statement.
Baidu’s autonomous driving program, known as Apollo, has been described as the “an Android for smart driving.” The Apollo program has landed more than hundred manufacturing and supplier partners. Baidu has also been busy testing autonomous driving and launch a robotaxi fleet in September.
The deal also comes on the heels of Baidu’s push beyond automotive software and into the production of vehicles. Baidu announced earlier this month that it plans to set up a new company to produce electric vehicles with the help of Chinese automaker Geely. Baidu will provide so-called smart driving technologies while Geely handles will the design, engineering and manufacturing of the vehicles.
Source: https://techcrunch.com/2021/01/25/blackberry-and-baidu-deepen-autonomous-connected-car-partnership/
President Joe Biden said Monday the U.S. government would replace the entire federal fleet of cars, trucks and SUVs with electric vehicles manufactured in the United States, a commitment tied to a broader campaign promise to create 1 million new jobs in the American auto industry and supply chains.
The commitment, if it bears out, could give a boost to U.S. automakers, particularly those that have diverse portfolios that include passenger cars, commercial vans and light trucks.
Biden made the comments prior to signing the Made in America executive order, which places stricter rules on the federal government’s procurement practices. The government has existing “buy American” rules, which states that a certain amount of a product must be made in the U.S. for a purchase to qualify for a federal contract.
Biden said this order closes loopholes and aims to increase purchases of products made in the United States. The executive order increases that product threshold and the price preference for domestic goods — meaning the difference in price from which the government can buy a product for a non-U.S. supplier. It also updates the process for how the government decides if a product was sufficiently made in America.
In the midst of his speech, Biden said the buy American directive would extend to the federal government’s massive fleet of vehicles.
“The federal government also owns an enormous fleet of vehicles, which we’re going to replace with clean electric vehicles made right here in America, by American workers, creating millions of jobs — a million auto worker jobs.”
The opportunity is a large one. The U.S. government had more than 645,000 vehicles in its fleet in 2019, the most recent data available from the General Services Agency. Of those, about 224,000 are passenger vehicles and more than 412,000 are trucks.
“GSA is committed to exploring opportunities to leverage the purchasing and leasing power of the federal government to address the climate crisis, including greening the federal fleet,” a GSA spokesperson told TechCrunch in an emailed statement. “GSA currently manages over 224,000 passenger vehicles in its fleet to support the Federal Government’s mission. By leveraging clean energy vehicle technologies, GSA will support the President’s climate goals, while working with the American automotive manufacturing industry to ensure that these next generation vehicles are built in America by American workers.”
The directive won’t be easy to fulfill. Many of these federal vehicles are leased, which could slow the transition depending on the contract lengths. There are other obstacles, including charging infrastructure and supply. And while it doesn’t appear to be a requirement, Biden has publicly stated numerous times — including Monday — that he supports union automotive jobs.
Tesla is considered the dominant U.S. manufacturer of electric vehicles. However, the company’s lack of union workers and the higher cost of its vehicles — even the less expensive Model 3 — could be a barrier.
Ford and GM might not have a vast supply of electric vehicles at the moment, but they do have union shops and both automakers are investing heavily to expand their EV offerings.
GM launched a new business unit earlier this month to offer commercial customers an ecosystem of electric and connected products as part of the company’s $27 billion bid to become a leading electric automaker. The new business, called BrightDrop, will begin with two main products: an electric van called the EV600 with an estimate range of 250 miles and a pod-like electric pallet dubbed EP1.
GM has said it plans to bring 30 new electric vehicles to a global market through 2025. More than two-thirds of those launches will be available in North America and every one of GM’s brands, including Cadillac, GMC, Chevrolet and Buick, will be represented, according to the automaker.
Meanwhile, Ford revealed in November a configurable all-electric cargo van called the E-Transit as part of its $11.5 billion investment in electrification. Ford has largely focused its electrification efforts on the consumer market, notably the Mustang Mach-E. The E-Transit, which will be built at its Kansas City Assembly Plant in Claycomo, Missouri, is aimed at the commercial sector.
There are a growing number of newer EV entrants as well, including Rivian, Lordstown Motors and Fisker. Rivian is expected to begin producing and delivering its electric pickup truck in July, followed by its all-electric SUV. Rivian is also developing and assembling electric vans for Amazon.
Biden’s call to transform the fleet supports statements he made throughout his campaign. Biden pledged to “use all the levers of the federal government,” including purchasing power, R&D, tax, trade, and investment policies to position the U.S. to be the global leader in the manufacture of electric vehicles and their input materials and parts.
As the United Kingdom prepares to sharpen its focus on how it regulates big tech companies, Facebook is taking a big step up in the role it plays in presenting media to the U.K. public, and into how it works with the country’s media industry.
Today it is launching Facebook News in the U.K., Facebook’s first market outside of the U.S. for its dedicated, curated news portal — accessed, like the U.S. version, through a tab in the Android or iOS app menu.
The portal will launch with content from hundreds of local and national media organizations including Channel 4 News, Daily Mail Group, DC Thomson, Financial Times, Sky News and Telegraph Media Group. The Economist, The Guardian, The Independent, STV and hundreds of local news sites from Archant, Iliffe, JPI Media, Midlands News Association, and Reach, as well as “lifestyle” titles GQ, Cosmopolitan, Glamour, Vogue and others were announced in an earlier list of partners last year.
Again, as with the U.S. version, users will be provided a list of curated top stories of the day; a list of personalized stories based on news sources you might already follow or interests you have (these might be from publications you don’t already follow); and dedicated news sections for sports, entertainment, health and science and technology. Users can indicate when they like stories, or when they want to hide them to train the algorithms better.
Facebook has confirmed to us that it will be working with a service called Upday to curate the stories that appear on News. “The product is a mix of curated, top stories and personalized links chosen by algorithm,” a spokesperson said. Upday appears to be a joint collaboration between German publisher Axel Springer and Samsung, which also runs a news service on its phones powered by it.
It is not clear what the financial terms of the deal is between Facebook and Upday, but reportedly, the licensing deals Facebook is cutting with publishers to place their content in News collectively run into the tens of millions of pounds, with the biggest publishers making millions a year from the the agreements. While those figures might pale to what Facebook makes in ad revenues globally — that reaches into the tens of billions of dollars quarterly — they represent significant sums for the beleaguered U.K. media industry.
People have long used newsfeeds on Facebook and other social sites to catch up with news while also browsing posts from friends, Groups and Pages that they follow. Facebook News aims to take that a step further, as a curated page for links and headlines from hundreds of publications in the country to provide users of its mobile apps a one-stop place to read the stories of the moment.
Social media continues to be a major source of news for consumers, but as we’ve seen, a very skewed and flawed source at that.
Within that context, Facebook says that its intention with Facebook News is to provide a more balanced and dedicated mix of news to people beyond what they might encounter in their newsfeeds, while also tailoring it to users’ interests.
It also helps that Facebook News provides yet another way for Facebook — which has made efforts in video, entertainment content, mentoring and job-hunting, Nextdoor-style community listings, peer-to-peer selling, and more — to continue diversifying away from the Newsfeed for those who have grown bored with that: now, people can come to the Facebook app to browse news, too.
Still, this international expansion has been a long time coming: Facebook News first launched as a test in the US more than a year ago, in October 2019, before rolling out to all users last June.
No word from Facebook on how many users or engagement the U.S. version of Facebook News has picked up, except that “it has grown steadily,” according to a spokesperson.
It’s not clear why there’s been such a long gap between its first efforts in the U.S. and the U.K. launch today, but Facebook has had more going on in addition to securing those licensing deals to roll out in this market.
Launching a new news portal, with the message that it’s designed to “help” publishers, takes on a new dimension when you consider that Facebook has also been in the crosshairs of regulators in Europe, who have been on a long-term mission to scrutinize the reach of big tech companies. In the UK, that is soon taking the form of a new “pro-competition” Digital Market Unit that will re-examine the role companies like Facebook and Google play in advertising, media and more.
Whether those regulatory moves will impact how a service like Facebook News works, or what revenue cuts and usage data are shared with news partners, remains to be seen.
In the meantime, it’s full speed ahead for more scaling: Facebook confirmed plans last year that its long-term aim is for a bigger international expansion for Facebook News, with the longer list of countries including Brazil, France, Germany, and India. In a blog post today, Facebook’s director of news partnerships in Europe, Jesper Doub, confirmed France and Germany were next in line for Facebook News, although no launch dates were specified.
As the United Kingdom prepares to sharpen its focus on how it regulates big tech companies, Facebook is taking a big step up in the role it plays in presenting media to the U.K. public, and into how it works with the country’s media industry.
Today it is launching Facebook News in the U.K., Facebook’s first market outside of the U.S. for its dedicated, curated news portal — accessed, like the U.S. version, through a tab in the Android or iOS app menu.
The portal will launch with content from hundreds of local and national media organizations including Channel 4 News, Daily Mail Group, DC Thomson, Financial Times, Sky News and Telegraph Media Group. The Economist, The Guardian, The Independent, STV and hundreds of local news sites from Archant, Iliffe, JPI Media, Midlands News Association, and Reach, as well as “lifestyle” titles GQ, Cosmopolitan, Glamour, Vogue and others were announced as an earlier list of partners last year.
Again, as with the U.S. version, users will be provided a list of curated top stories of the day; a list of personalised stories based on news sources you might already follow or interests you have (these might be from publications you don’t already follow); and dedicated news sections for sports, entertainment, health and science and technology. Users can indicate when they like stories, or when they want to hide them to train the algorithms better.
Facebook has confirmed to us that it will be working with a service called Upday to curate the stories that appear on News. “The product is a mix of curated, top stories and personalized links chosen by algorithm,” a spokesperson said. Upday appears to be a joint collaboration between German publisher Axel Springer and Samsung, which also runs a news service on its phones powered by it.
It is not clear what the financial terms of the deal is between Facebook and Upday, but reportedly, the licensing deals Facebook is cutting with publishers to place their content in News collectively run into the tens of millions of pounds, with the biggest publishers making millions a year from the the agreements. While those figures might pale to what the company makes in ad revenues globally (which reaches into the tens of billions of dollars quarterly), they represent significant sums for the beleaguered U.K. media industry.
People have long used newsfeeds on Facebook and other social sites to catch up with news while also browsing posts from friends, Groups and Pages that they follow. Facebook News aims to take that a step further, as a curated page for links and headlines from hundreds of publications in the country to provide users of its mobile apps a one-stop place to read the stories of the moment.
Social media continues to be a major source of news for consumers, but as we’ve seen, a very skewed and flawed source at that. Within that context, Facebook says that its intention with Facebook News is to provide a more balanced and dedicated mix of news to people beyond what they might encounter in their newsfeeds, while also tailoring it to users’ interests. It also helps that Facebook News provides another way for Facebook to continue diversifying away from the Newsfeed for those who have grown bored with that: now, people can come to the Facebook app to browse news, too.
Still, this international expansion has been a long time coming: Facebook News first launched as a test in the US in October 2019 before rolling out to all users last June.
No word from Facebook on how many users or engagement the U.S. version of Facebook News has picked up, except that “it has grown steadily,” according to a spokesperson.
It’s not clear why there’s been such a long gap, but Facebook has had more going on in addition to securing those licensing deals and rolling out in its first market.
Launching a new news portal, with the message that it’s designed to “help” publishers, takes on a new dimension when you consider that Facebook has also been in the crosshairs of regulators in Europe, who have been on a long-term mission to scrutinize the reach of big tech companies. In the UK, that is soon taking the form of a new “pro-competition” Digital Market Unit that will re-examine the role companies like Facebook and Google play in advertising, media and more.
Facebook confirmed plans last year that its long-term aim is for a bigger international expansion for Facebook News with the longer list of countries including Brazil, France, Germany, and India. In a blog post today, Facebook’s director of news partnerships in Europe, Jesper Doub, confirmed France and Germany were next in line for Facebook News, although no launch dates were specified.
