India Accuses Samsung, Xiaomi, Amazon, and Others of Antitrust Violations for Prioritizing Online Sales

In a significant move, India's Competition Commission (CCI) has leveled accusations against major electronic giants Samsung, Xiaomi, Motorola, Realme, OnePlus, and leading e-commerce platforms Amazon and Flipkart. The central allegation is a collaborative effort to prioritize the sale of newly launched smartphones exclusively through these online platforms, a practice deemed to violate antitrust laws.

This controversy stems from the longstanding tension between the All India Mobile Retailers Association and smartphone manufacturers. Retail associations have been advocating for direct access to new products and a fair share of profit margins, which seems to be jeopardized by manufacturers' preference for online sales.

For Original Equipment Manufacturers (OEMs), online sales channels simplify distribution processes and potentially increase profit margins. E-commerce platforms, on their part, benefit from exclusive deals that draw more customers to their websites.

The CCI's statement highlights a concerted effort by manufacturers like Samsung and Xiaomi in collaboration with Amazon, Flipkart, and their subsidiaries, to launch products exclusively online, thereby favoring a limited set of sellers and disadvantaging other vendors on these platforms.

The Delhi Vyapar Mahasangh (DVM), representing a wide array of small and medium-sized traders, has pointed out that agreements between Amazon, Flipkart, and selected sellers have hindered other retailers' access to new products. They argue that exclusive online sales and promotional discounts drive consumers towards these platforms, at the expense of physical stores.

Legal actions have been initiated by DVM against the accused manufacturers and e-commerce sites. The CCI, having deemed such practices as anticompetitive, will allow the implicated OEMs and platforms to file appeals in the coming weeks.

Following the appeals, the CCI will conduct a thorough review, potentially leading to mandated changes in business practices or financial penalties against the violators. Additionally, the regulatory body has requested Amazon and Flipkart to submit financial records of the past three years to further investigate the details of this case.