Major smartphone brands like Samsung and Xiaomi are under scrutiny for alleged antitrust violations.
These companies, along with others, are accused of engaging in exclusive launch deals with Amazon and Flipkart, potentially breaching competition laws in India.
The Competition Commission of India (CCI) has conducted antitrust investigations into these practices.
In a significant development that could shake up the smartphone industry, major companies like Samsung and Xiaomi are under scrutiny for alleged antitrust violations. These companies, along with others, are accused of engaging in exclusive launch deals with e-commerce giants Amazon and Flipkart, potentially breaching competition laws in India.
The Competition Commission of India (CCI) has conducted antitrust investigations into these practices, finding that both Amazon and Flipkart have given preferential treatment to certain sellers. This has involved prioritising specific product listings and offering substantial discounts, which has negatively impacted other companies, reports Reuters.
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According to a detailed 1,027-page report on Amazon and a 1,696-page report on Flipkart, the Indian branches of Samsung, Xiaomi, Motorola, Realme, and OnePlus were found to be involved in exclusive product launches in collaboration with these e-commerce platforms, breaking competition law.
G.V. Siva Prasad, the additional director general at CCI, commented, “Exclusivity in business is anathema. Not only is it against free and fair competition but also against the interest of consumers.”
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These revelations are a major blow to Amazon and Flipkart, who have been accused of stifling competition and disadvantaging smaller retailers. The CCI’s findings indicate that these companies have used their foreign investments to offer subsidised rates for services like warehousing and marketing, favouring select sellers.
The investigation, which began in 2020 following a complaint from a major retailer association, could lead to significant consequences. The CCI has requested financial statements from the involved smartphone companies and may impose fines or require changes in business practices.
With India’s e-retail market poised to grow substantially, the outcome of this investigation could reshape the dynamics of online sales and competition in the country.
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Ayushi Jain
Tech news writer by day, BGMI player by night. Combining my passion for tech and gaming to bring you the latest in both worlds. View Full Profile
