The Bengaluru-based company is aiming for a $50 billion valuation for its public listing as early as this year and was in talks in the United States for a deal with a blank-check firm, Reuters reported in March.
I tell my sellers at a time like Diwali if you reduce your prices, I will give you a reduction in rent. What's wrong?".
India's foreign investment law for e-commerce says "entities providing (a) marketplace will not directly or indirectly influence the sale price of goods or services".
New Delhi has been considering revising e-commerce foreign investment rules for weeks. The last time they were changed, in 2018, it forced Amazon and Flipkart to rework their business structures and soured trade relations between India and the United States.
Amazon has said it "does not give preferential treatment to any seller on its marketplace," and that it "treats all sellers in a fair, transparent, and non-discriminatory manner".
The talks for a deal with a special purpose acquisition company (SPAC) are at a very early stage and could fall apart as no plans have been finalized yet, said the people, who declined to be named as the information is confidential.
India's largest renewable energy firm ReNew Power last month struck a deal with a blank-check company to go public in the United States, while SoftBank-backed online grocery startup Grofers has also held talks with SPACs.
Amazon is locked in a battle for dominance with Walmart-backed Flipkart and Reliance as well as thousands of local traders who have accused the US firm of driving them out of business.
"We are happy to announce that PS5 shall be launched in India on 2nd of February 2021," the Japanese firm tweeted from its PlayStation India Twitter handle.