New Delhi (CNN Business) Amazon and Walmart face new rules in India that could prevent them from using their industry expertise and massive size to drive down prices.

Restrictions unveiled by the Indian government on Wednesday ban foreign e-commerce companies from offering their customers exclusive products such as smartphones.

The new guidelines also appear to close a loophole that had allowed foreign online retailers to sell their own products through affiliated companies.

Scheduled to take effect on February 1, the rule changes reflect fears that large swathes of the world's fastest growing major economy could come to be dominated by American firms.

"E-commerce entities providing marketplace will not directly or indirectly influence the sale price of goods or services and shall maintain level playing field," the rules state.

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