StartupTalky

Tag: European Union

  • Amazon Crosses $20 Billion E-Commerce Exports from India, Targets $80 Billion by 2030

    Amazon, the massive online retailer, announced on 27 October that it had exceeded its goal of $20 billion in total exports from India over the past ten years and is now aiming for $80 billion in outflows by 2030. Since its introduction in 2015, Amazon has registered over 200,000 exporters who sell over 750 million domestic products under its Global Selling programme.

    Over the past year, the company’s overall seller base has increased by more than 33%. Amazon’s 2020 intention to facilitate $10 billion in e-commerce exports by 2025 was then changed to $20 billion in the same time frame.

    Amazon Enjoying Fruitful Ride in India

    The company claims that categories such as health and personal care (45%), beauty (45%), toys (44%), home (39%), clothing (37%), and furniture (36%) have the strongest 10-year (2015–2025) compound annual growth rate (CAGR). The momentum, according to Srinidhi Kalvapudi, head of Amazon Global Selling India, is a reflection of Indian companies’ aspirations and the expanding significance of e-com exports in international trade.

    Building on this success, Amazon is committed to making international selling easier through technological innovation, capacity building, and ecosystem partnerships as it strives to reach its $80 billion cumulative e-commerce export target by 2030. It is still dedicated to supporting India’s e-commerce export expansion in keeping with the government’s objective of achieving $200–$300 billion by 2030.

    US and EU Top Markets for Amazon

    The two largest international markets for Amazon under the programme are the US and the EU. Germany, Canada, the United Arab Emirates, France, Italy, Spain, and Saudi Arabia are a few additional markets, though.

    When asked how the company’s exports are affected by changes in international trade rules, such as the elimination of the “de minimis” system, Kalvapudi responded that it’s a long-term story of structural strengths and creating skills that can compound over time. Because it is a structural tale rather than a seasonal one, Amazon continues to concentrate on these controllable inputs. Building the appropriate capacities is also important, and we have already surpassed the targets. Prior to the ‘de minimis’ exemption, packages under $800 could enter the US duty-free and with no scrutiny.

    Quick Shots

    •Amazon surpasses its $20 billion e-commerce export target from
    India.

    •Sets a new goal to reach $80 billion in exports by 2030.

    •Achieved through the Amazon Global Selling program launched in
    2015.

    •Over 200,000 Indian exporters registered under the program.

    •Sellers offer 750+ million ‘Made in India’ products globally.

    •Seller base up 33% in the past year.

  • Nayara Energy Takes Microsoft to Court Over EU Sanctions Fallout

    Nayara Energy, a refiner supported by Russian oil giant Rosneft, filed a lawsuit against Microsoft in the Delhi High Court after the latter ceased to provide services to the company due to EU sanctions. Microsoft is “currently restricting Nayara Energy’s access to its own data, proprietary tools, and products—despite these being acquired under fully paid-up licenses,” according to a statement released by Nayara Energy on 28 July.

    According to Nayara Energy, this decision creates a risky precedent for corporate overreach and raises significant worries about its effects on India’s energy ecosystem because it is based only on Microsoft’s unilateral interpretation of recent European Union (EU) sanctions.

    In order to protect its rights and guarantee ongoing access to crucial digital infrastructure, the company has petitioned the Delhi High Court for an interim injunction and the resumption of services. The purpose of these actions is to avoid any possible interference with Nayara’s capacity to fulfil its commitments to Indian stakeholders and customers.

    What’s Behind the EU Sanctions?

    In its latest attempt to pressure Russia to put an end to the conflict in Ukraine, the European Union said on July 18 that it was suspending Nayara Energy, in which the Russian oil giant Rosneft owns a 49.13 percent interest.

    Nayara Energy’s exports of petroleum products and fuels to Europe would be prohibited by the sanctions, which might also affect its business relationships with European firms. Rosneft’s intention to leave Nayara may also be hampered since potential investors may be alarmed by the EU sanctions.

    Impact on India’s Energy Sector

    Nayara Energy has a network of about 6,800 fuel retail locations and owns and runs a 20 million-ton oil refinery in Vadinar, Gujarat, annually. It makes up about 7% of India’s fuel retail network and 8% of the nation’s overall refining capacity. Through its own retail network, institutional sales, and alliances with other oil marketing firms, Nayara Energy mainly serves the domestic market.

    Nayara Energy’s Russian Ties: A Quick Background

    Formerly known as Essar Oil, the business was a member of the Essar group. After being purchased from the Essar company by a group of investors that included Rosneft, it was renamed Nayara Energy. Similar to Rosneft, a 49.13% share in the company is held by Kesani Enterprises, a consortium managed by Russia-based United Capital Partners (UCP) and Italy’s Mareterra.

    Despite being owned by a consortium of foreign investors, primarily from Russia, Nayara insists that it is an Indian business subject to Indian law. In a statement released on July 28, Nayara Energy stated that although the EU is the only source of the penalties, Microsoft, a company with its headquarters in the US, has decided to stop providing services to Nayara Energy without being required to do so by US or Indian law.

    Microsoft’s Position and Global Implications

    Under the pretence of compliance, this action was performed unilaterally, without previous warning, consultation, or redress. These actions reveal a concerning pattern of multinational firms introducing foreign legal systems into areas where they are not applicable.

    The refiner went on to say that Nayara Energy complies completely with Indian rules and regulations in all aspects of its business operations and maintains constant contact with Indian authorities to guarantee accountability and transparency. Notwithstanding these outside obstacles, Nayara Energy is steadfast in its resolve to provide continuous service and supply to meet India’s energy needs.

    Microsoft Restores Services to Russia-Linked Nayara Energy, Stirring Global Debate

    According to a Reuters report, Microsoft has restored IT services to Nayara Energy, an Indian oil refinery financed by Russia. Microsoft was sued by Nayara for abruptly suspending services after the European Union imposed further sanctions on Russia.

    Nayara’s attorney informed a court in New Delhi on 31 July that the US corporation had restored the services, according to a Reuters report. Before the planned hearing, Microsoft restored all services, including full access to the email system, Microsoft Teams platform, and other Microsoft services, according to a PTI report that cited sources.

    Recent sanctions from the EU have had a major effect on Nayara’s business operations, forcing the company to scale back operations at its refinery, which can process 400,000 barrels per day. Limited fuel storage facilities and vessel operators looking to end their contracts with the corporation were the main causes of the limitations.

  • European Union’s Digital Competition Law Hits Tech Giants Apple and Meta

    On April 23, European Union regulators announced that Apple and Meta were the initial companies to be penalised for violating a new law that was designed to enhance competition in the digital economy.

    This development is expected to escalate tensions with the Trump administration. For violating the 2022-passed Digital Markets Act, Apple was fined 500 million euros ($570 million), and Meta was fined €200 million ($230 million).

    The goal of European legislation is to prevent large tech firms from misusing their power as digital gatekeepers, which allows them to unilaterally impose regulations on businesses and customers.

    The European Commission, the executive arm of the 27-nation EU, accused Apple of violating the Digital Markets Act by limiting the way app developers may inform consumers about deals and other offers. By enforcing a “consent or pay” system that requires users to either pay a subscription fee for ad-free versions of Facebook and Instagram or consent to the usage of their personal data to target advertisements, Meta violated it.

    Trade War Between EU and the US

    Despite the conflict between the US and the EU over trade, tariffs, and the conflict in Ukraine, there has been some agreement on how to deal with the market dominance of the biggest digital firms in the world.

    As owners of goods and services necessary for information, communication, trade, and other purposes, the tech giants have accumulated trillions of dollars in share value. Over the past year, Google has lost two significant antitrust cases in the US for abusing its dominance in the search and advertising industries.

    Meta is on trial in Washington on charges that it used acquisitions to stifle competition. Apple and Amazon are also being sued for antitrust in the United States. However, the Trump administration took offence at the decision.

    The United States will not allow this new type of economic extortion, according to National Security Council spokesperson Brian Hughes. Extraterritorial laws that specifically target and harm American businesses, impede innovation, and permit censorship will be acknowledged as trade obstacles and a direct danger to free civil society, he continued.

    According to a February White House letter, authorities would think about taking revenge if the European Union singled out American internet firms under the Digital Markets Act or the Digital Services Act, which are laws aimed at reducing disinformation and illegal online content.

     Meta declared that it will probably challenge the decision, comparing it to imposing high tariffs on American businesses’ services.

    Apple accused the commission of compelling it to make adjustments to its products that amounted to giving away its technology and said that it would appeal the ruling.

    The business was fined $2 billion by the European Union last year for undercutting competitors in the music streaming market through the App Store.

    In a statement, Joel Kaplan, chief global affairs officer at Meta, claimed that the European Commission is trying to hinder prosperous American corporations while permitting European and Chinese enterprises to function according to separate rules.

    This is more than simply a fine. The commission’s requirement that Meta should alter its business strategy amounts to a multibillion-dollar tariff on Meta and forces the company to provide a subpar service.

  • Apple Being Warned by the EU to Make the iPhone OS Available to Other Technologies

    In order to avoid incurring substantial fines in accordance with its hallmark digital antitrust regulations, the European Union has issued a warning to Apple Inc., urging the company to make its highly guarded operating systems for the iPhone and iPad easily accessible to competing technology.

    In accordance with the Digital Markets Act of the European Union, the watchdogs of the EU have announced that the company based in Cupertino, California is required to comply with stringent new restrictions regarding the integration of operating systems with other technologies. Six months were given to the corporation by the authority based in Brussels to comply, or else they would be subject to potential penalties in the future.

    EU Aims to Compel Apple to Re-Engineer Its Services

    Despite the fact that the announcement is not yet an official inquiry, the European Union intends to force Apple to redesign its offerings in order to grant competitors an access to the operating systems of the iPhone and iPad.

    According to a statement released by the Deputy Commissioner for Competition of the European Union, Margrethe Vestager, it marks the first time that specification proceedings under the DMA have been used to steer Apple towards effective compliance with its interoperability requirements. An significant factor in this is the presence of effective interoperability, which can be seen, for instance, in smartphones and the operating systems that they use.

    Reasons and Repercussions if Apple Doesn’t Agree to the Norm

    Assuring that other developers have access to essential Apple capabilities, such as Siri voice commands and the payments chip, is one of the goals of the Digital Markets Act (DMA).

    In the case that Apple does not comply with the DMA, the European Union may decide to initiate a formal investigation at a later time. This might ultimately result in significant fines of up to 10% of the company’s yearly sales worldwide. It has already been subjected to a parallel inquiry examining the restrictions that it has established for developers within its App Store, which may also result in significant penalties.

    The latest version of Apple’s flagship gadget, the iPhone 16, was introduced earlier this month. The company is hoping that it will be able to attract customers with relatively minor hardware enhancements and artificial intelligence technology that is still in the development stage.

    On the other hand, the American company announced in June that certain services, such as Apple Intelligence, iPhone Mirroring, and SharePlay Screen Sharing, would not be available in the European Union. This was owing to the criteria that the DMA places on OS systems in order for them to be compatible with third-party applications.

    Apple Has Begun Preparing Its Employees to Manufacture iPhone Pro Models in India
    Thousands of workers at Apple’s Tamil Nadu facility have reportedly begun training in order to manufacture the iPhone 16 Pro and Pro Max as near to the worldwide debut as feasible.
    StartupTalkyNitin Konde

  • In 2025, Hero MotoCorp Will Introduce Its E-scooters to the UK and EU Markets

    Hero MotoCorp, an Indian company, is planning to make its debut in developed markets by introducing electric scooters operating under the Vida brand. As per the company’s plan, it will launch its brand in the UK, France, and Spain by middle of 2025. Hero is making its first foray into the markets of the UK and Europe with the intention of capitalizing on the rising demand for electric vehicles in these regions.

    The action, which coincides with ongoing discussions between India and the United Kingdom regarding a free trade agreement, has the potential to reduce tariffs in the automobile industry, thereby giving additional prospects for growth.

    Niranjan Gupta, the chief executive officer of Hero, was quoted by a media outlet as saying that the strong customer mood in these regions towards their electric scooters was underlined. In order to successfully manage the transition towards electric transportation, the corporation, which is already a key participant in Asia, Africa, and Latin America, intends to capitalize on this kind of enthusiasm.

    However, analysts feel that in order for Hero to achieve success in these developed regions, it will be necessary for the company to provide products that are more expensive and premium. This is a market sector in which Hero has not yet established a solid presence.

    An Alliance Between Hero and Harley-Davidson

    Due to Hero’s existing collaboration with Harley-Davidson, the company is able to manufacture motorcycles for the Indian market that are associated with the legendary brand. As the existing relationship between the two companies is only confined to India, Gupta pointed out that the expansion of Harley-Davidson’s shipments to the United Kingdom would be contingent on future agreements with the Milwaukee-based company.

    The expansion of the company into Europe comes at a time when India’s vehicle emission rules, which were upgraded in 2020, are now in compliance with worldwide laws, which opens up new opportunities for Indian manufacturers. The imposition of higher tariffs on Chinese imports has opened up new opportunities for Indian manufacturers such as Hero to sell their products in developed countries. However, Hero will have the issue of successfully presenting its luxury motorcycles alongside its electric scooters in areas that are accustomed to higher-end models. This will be a challenge for Hero because it will be difficult to navigate the competitive landscape.

    Hero Motocorp’s Sales Report Card of August 2024

    For the month of August 2024, Hero MotoCorp announced sales of 512,360 units, which is a month-on-month increase of 38 percent. Year-to-date sales for the automobile manufacturer have increased by 8% when compared to the same period in the previous year. During the month of August 2024, other automotive manufacturers, on the other hand, had a decreasing trend.

    The total number of vehicles sold by Tata Motors was 71,693 less than the 78,010 units that were sold in August 2023. This is an 8.1% decrease in overall sales. In a similar vein, Maruti Suzuki, another significant player in the automobile industry in India, saw a decrease in overall sales of 4% compared to the previous year.

    Hero MotoCorp – Founders, Business Model, Revenue Model and More
    Hero MotoCorp is one of the leading two-wheeler manufacturers in India founded by Brijmohan Lall Munjal. Look at its business model and more.
    StartupTalkyShalini Rath