Samsung-Xiaomi accused of colluding with Amazon-Flipkart: CCI said- companies launched exclusive products on these sites, this is a violation of anti-competition laws

The Competition Commission of India (CCI) has accused Samsung, Xiaomi and other smartphone companies of colluding with Amazon and Walmart’s Flipkart. CCI says that these companies collaborated with e-commerce sites to launch exclusive products on their sites, which is a violation of anti-competition laws.

According to a Reuters report, CCI found in its investigation that Amazon and Flipkart gave preference to certain sellers, priority to some listings and huge discounts, which harmed other companies and was a violation of local law.

Five companies including Samsung violated competition laws

In its 1,027-page report, the CCI said the Indian units of five companies – Samsung, Xiaomi, Motorola, Realme and OnePlus – along with Amazon and its affiliates launched exclusive phones in violation of competition laws.

These companies including Samsung-Realme launched exclusive phones

In the Flipkart case, CCI said in its 1,696-page report that the Indian units of Samsung, Xiaomi, Motorola, Vivo, Lenovo and Realme launched exclusive phones.

Exclusive sale is against free and fair competition and the interests of consumers

CCI Additional Director General GV Shiva Prasad has written in these reports dated August 9 that exclusive sale is not only against free and fair competition but is also against the interests of consumers.

The investigation into Amazon, Flipkart and their sellers began in 2020 following a complaint by an 8-crore member organization affiliated to the country’s largest retailer association, Confederation of All India Traders.

The investigation of Amazon and Flipkart started in the year 2020

CCI also said that both of them used foreign investment to provide services like warehousing and marketing to select sellers at cheap rates. The investigation of Amazon, Flipkart and their sellers started in 2020 on the complaint of an 8 crore member organization associated with the country’s largest retailer association Confederation of All India Traders.

Indian retailers have repeatedly accused Amazon and Flipkart, as well as smartphone companies, of not providing retailers with the latest models, hurting their business.

50% of phone sales were online last year, down from 14.5% in 2013

Indian research firm Datum Intelligence estimates that 50% of phone sales were online last year, up from 14.5% in 2013. Flipkart is projected to have a 55% share of online phone sales in 2023, and Amazon at 35%.

CCI orders companies to submit financial statements

Now, based on its reports, CCI has ordered some smartphone companies – Xiaomi, Samsung, OnePlus, Realme and Motorola – to submit their financial statements for three financial years till 2024, certified by auditors. This order has been given on August 28.

Companies may be asked to change business practices

According to the information, CCI will review any objections raised by Amazon, Flipkart, Retailer Association and smartphone companies on its report in the coming weeks, after which a penalty can be imposed. Also, companies can be asked to change their business practices.

E-retail market in India can cross $16 trillion by 2028

The e-retail market in India is growing rapidly and according to estimates by consultancy firm Bain, it is expected to cross $16 trillion by 2028, from $57 billion to $6 billion in 2023.