Smartphone Makers and E-Commerce Giants Face Antitrust Allegations in India
The CCI began this investigation in 2020 after a complaint from the Confederation of All India Traders.
Several people holding smartphones, with different phone models visible.
Samsung, Xiaomi, and other smartphone companies are accused of breaking antitrust laws in India by working with Amazon and Flipkart to launch products exclusively on their platforms, according to a Competition Commission of India (CCI) report reviewed by Reuters.
The CCI investigation found that Amazon and Flipkart gave preferential treatment to certain sellers, promoted specific listings, and offered deep discounts, harming other businesses.
The reports indicate that Samsung, Xiaomi, Motorola, Realme, and OnePlus participated in these exclusive launches with the e-commerce giants.
The findings could lead to legal troubles for these companies.
G.V. Siva Prasad from CCI criticised these exclusivity practices, stating they hurt competition and consumer choice.
The reports, dated August 9, were initially confidential. While Xiaomi declined to comment, other companies and Amazon and Flipkart have not responded.
The CCI began this investigation in 2020 after a complaint from the Confederation of All India Traders, which represents 80 million members.
The commission found that Amazon and Flipkart used foreign investments to offer special rates to a select few sellers.
Xiaomi, Samsung, OnePlus, Realme, and Motorola have been asked to submit their financial records for the past three years.
The CCI will review any objections and may impose fines or require changes in business practices.
Retailers have long criticised Amazon and Flipkart for exclusive online phone launches, which they say harm physical stores.
Online phone sales have increased significantly, with Flipkart and Amazon controlling most of the market.
