Now, regulators are cracking down, since the online services pay no tax and violate laws. In Amazons case, India bans FDI in direct online retail, so Amazon and other e-commerce sites including Flipkart have complicated structures that on paper show that these companies operate purely as marketplaces. The ED is probing online retail sites for possible violation of FDI laws. Amazon warned that it is possible the government will ultimately take a view contrary to ours. Uber is mired in the regulatory web because of the way it operates. Uber collects fares from a passengers credit card, transmits it to the Netherlands-based Uber BV in foreign currency, and sends 80% of it back to the driver after deducting commission. As it operates through a foreign payment gateway, it sidesteps the mandatory two-stage authentication for credit card transactions in India. In all these cases, the problem is that innovations have outpaced regulations.