Indian mobile retailers call for ban on iQoo, Poco, and OnePlus, citing anti-competitive practices

The All India Mobile Retailers Association (AIMRA) has called for a ban on the Chinese smartphone brands iQoo, Poco, and OnePlus. AIMRA alleges that these companies engage in anti-competitive practices that harm local businesses and the Indian economy. The association has appealed to Commerce and Industry Minister Piyush Goyal and Finance Minister Nirmala Sitharaman, requesting the cancellation of these companies' licenses.

Exclusive Agreements and Grey Market Concerns

Representing over 1.5 million mobile retailers in India, AIMRA accuses these brands of having exclusive distribution agreements with e-commerce giant Amazon. This arrangement, they argue, bypasses traditional retail channels, marginalizing local retailers and depriving the government of tax revenue from offline sales.

"Despite reports from the Competition Commission of India (CCI) and our persistent follow-ups, these companies continue to violate regulations by maintaining exclusive agreements with Amazon and refusing to distribute products through retail stores," stated Kailash Lakhyani, Founder and Chairman of AIMRA.

AIMRA also raises concerns about unauthorized product diversion from online to offline channels, which disrupts fair trade practices and the flow of funds.

Impact on Local Businesses and the Exchequer

Lakhyani highlights several negative impacts of these practices on local businesses and the Indian economy:

Marginalization of Retailers: Exclusive online distribution limits opportunities for local retailers.

Reduced Tax Revenue: Grey market activities and online-only sales deprive the government of potential GST revenue.

Limited Consumer Choice: Customers lose bargaining power and face restricted choices due to the lack of offline availability.

Vivo's iQoo as a Case Study

AIMRA specifically cites Vivo's sub-brand, iQoo, as an example of these practices. The association claims that iQoo primarily sells its products through online platforms like Amazon, Flipkart, and its own online store, despite repeated requests for wider retail distribution.

"IQOO smartphones, a sub-brand of Vivo Mobiles, are currently under investigation by the Enforcement Directorate for a money laundering case. Additionally, Vivo’s name has surfaced as an offender in the latest findings by the Competition Commission of India (CCI). Despite our persistent efforts, we have encountered continuous delays and no progress in billing retailers," Lakhyani said.

Call for Government Action

AIMRA has appealed to the government to take decisive action against these companies.

"We request your intervention to escalate this issue to the Hon'ble Commerce and Industry Minister, Piyush Goyal, and Finance Minister, Nirmala Sitharaman, calling for the cancellation of licenses for such companies. It is crucial to protect local businesses and uphold fair trading practices in our country," Lakhyani stated in a letter to Member of Parliament Praveen Khandelwal.