ARTICLE
24 August 2022

ONDC: Our Open Network For Digital Commerce Must Win Trust

I
Ikigai Law

Contributor

Ikigai Law is an award-winning law firm with a sharp focus on technology and innovation-led businesses. We advise clients from high impact startups to mature market-leading companies and are often at the forefront of policy and regulatory debates for emerging business models. Our TMT practice is ranked by Chambers and we were named Boutique Law Firm of the Year in 2019 by Asian Law Business.
Aparajita, Partner at Ikigai Law and Amol Kulkarni, Research Director at CUTS published an op-ed in Mint titled "Our open network for digital commerce must win trust". Key points they make...
India Technology

Aparajita, Partner at Ikigai Law and Amol Kulkarni, Research Director at CUTS published an op-ed in Mint titled "Our open network for digital commerce must win trust". Key points they make:

ONDC has loose ends. It may work in theory but might have potential risks, unintended consequences and challenges to scale. An entirely decentralised network looks unfeasible because managing the entire order lifecycle requires scale and smaller network participants will struggle.

Its open nature increases the possibility of suspicious elements joining the network, ostensibly as service providers, sellers or consumers. The decentralized nature of the network may make it hard to keep them out. It may make fixing accountability difficult and the redressal of grievances cumbersome, which could reduce overall trust within the network.

The structure of the ONDC creates a conflict of interest and lack of checks and balances. Incorporated as a not-for-profit company, it is majority owned by private sector institutions, most of which are likely to act as, or have an interest in, network participants, directly or indirectly.

Significant ambiguity persists with respect to its design and functioning, it appears that in its pursuit of speed, the ONDC may end up compromising consumer and merchant interests.

In conclusion, entities in the e-commerce ecosystem should proactively engage with the ONDC to obtain more transparency and approach integration accordingly.

Excerpts from an op-ed by – Aparajita, Partner at Ikigai Law and Amol Kulkarni, Research Director at CUTS

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More