Mobile retailers are not reportedly happy with their anti-competitive practices.
AMIRA talked about the brands relying primarily on online sales channels in the letter.
It also highlighted the detrimental effects of these practices in the letter to Praveen Khandelwal.
The All India Mobile Retailers Association (AMIRA) has formally requested the Central government to cancel the operating licenses of some Chinese smartphone makers. This includes iQoo, Poco, and OnePlus. Why is this happening? According to a report by MoneyControl, mobile retailers are not happy with their anti-competitive practices. The association sent a letter to Commerce and Industry Minister Piyush Goyal and Finance Minister Nirmala Sitharaman on September 27, urging them to take immediate action.
In the letter, AMIRA talked about the brands relying primarily on online sales channels in the letter. This is a problem because e-commerce exclusivity can affect the importance of protecting local businesses and maintaining fair trading practices, according to the association. Kailash Lakhyani, Founder and Chairman of AIMRA explained, “IQOO smartphones are mostly available on platforms such as Amazon and Flipkart, with very little supply to traditional retail outlets. This trend is marginalizing local retailers and raises serious compliance concerns.”
Further, he also added, “Many Chinese companies engage in similar behaviors, utilizing online platforms to support grey market activities, which undermines fair trade in Bharat. We are seeking the cancellation of licenses for firms that do not support local businesses.”
Apart from this, AMIRA also highlighted the detrimental effects of these practices in the letter to Praveen Khandelwal. “The earnings of these brands are retained in Complete Knocked Down (CKD) formats, contributing minimally to the exchequer. Local traders are left without access to products, which limits their ability to contribute to the economy. Moreover, customers are deprived of their bargaining rights, further stifling competition,” said Kailash Lakhyani in the letter.
AMIRA’s concerns about Amazon and Flipkart’s exclusive distribution agreements with the smartphone brands underscore the urgent need to protect local mobile retailers. The association represents over 1.5 million members, and its plea for government intervention shows the importance of fair competition.
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