Amazon.com has forecast first-quarter sales below Wall Street estimates, warning that new regulations in India had created uncertainty around one of its key growth markets and saying it would step up investments in 2019.
Though its international operating loss shrunk to $642 million in the quarter from $919 million a year earlier, new regulations in India are poised to take a toll. The rules seek to protect local businesses by prohibiting foreign e-commerce companies from selling products via vendors in which they have an equity interest.
Brian Olsavsky, Amazon’s chief financial officer, said on a call with reporters that the situation in India is a bit fluid right now.
The company began removing a wide array of products from its India website late on Thursday to comply with the new foreign investment curbs that kick in on Feb. 1, Reuters reported.
Still, Olsavsky said, India remains a good long-term opportunity.