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India risks US backlash over rules hitting Amazon and Walmart

Modi tries to protect local stores as online shopping booms

A man pushes shopping trolleys at a Walmart India's Best Price Modern Wholesale store in Jammu.   © Reuters

MUMBAI -- India's new restrictions on how e-commerce companies such as Amazon and Walmart's Flipkart sell in a fast-growing online market could spark accusations of protectionism from the U.S. government, analysts say.

The regulations announced on Wednesday ban e-commerce companies from selling products through local businesses in which they hold a stake, and also tighten rules on practices such as deep discounts.

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