From Investing.com: 2024-09-14 06:01:04

Samsung, Xiaomi, and other smartphone companies allegedly colluded with Amazon and Flipkart to exclusively launch products on their Indian websites in violation of antitrust laws. The Competition Commission of India found that these companies were involved in practices that hurt competition, including prioritising select sellers and steep discounting, according to Reuters.

The reports revealed that Amazon and Flipkart violated competition laws by favoring certain sellers and listings. Samsung, Xiaomi, Motorola, Realme, and OnePlus were accused of exclusive phone launches in collusion with Amazon and its affiliates. This could lead to legal challenges for these smartphone companies.

The CCI reports alleged that Samsung, Xiaomi, Motorola, Vivo, Lenovo, and Realme were involved in practices similar to exclusive launches on Flipkart. The CCI emphasized the negative impact of exclusivity on competition and consumer interests, stating that such practices are against fair competition.

Counterpoint Research data shows that Samsung and Xiaomi are major players in India’s smartphone market, collectively holding a 36% market share. India’s e-retail market is expected to surpass $160 billion by 2028. The investigation findings pose a significant obstacle for Amazon and Flipkart in a crucial growth market.

The CCI reports indicated that Amazon and Flipkart downplayed allegations of exclusive launches during investigations but the practice was found to be widespread. The reports highlight the misuse of foreign investments by the companies to offer subsidised services to select sellers. This is a setback for online sales growth in India.

The investigation was initiated in 2020 after a complaint from a retailer association affiliate. The CCI plans to review objections from the companies involved and could impose fines or require changes in business practices. Indian retailers have long criticized exclusive online phone launches for impacting their business negatively.



Read more at Investing.com: Exclusive-India accuses Samsung, Xiaomi of colluding with Amazon, Flipkart By Reuters