Samsung, Xiaomi Accused of Colluding With Amazon and Flipkart for Exclusive Smartphone Launches, Amazon, Flipkart

Some big smartphone companies in the country may be in trouble. The Competition Commission of India (CCI) has accused Samsung, Xiaomi and other smartphone makers of violating the law related to competition by collaborating with e-commerce companies Amazon and Flipkart. These smartphone makers had exclusively launched products on the websites of e-commerce companies in the country, which is a violation of the law related to competition.

An investigation by the CCI found that Amazon and Flipkart had harmed other companies by giving priority to select retailers and offering huge discounts. Reuters reported on Amazon CCI The CCI report has said that the units of Samsung, Xiaomi, Motorola, Realme and OnePlus in the country had partnered with Amazon and its associated firms to launch smartphones exclusively. This is a violation of competition law. Apart from this, the CCI report on Flipkart states that the units of Samsung, Xiaomi, Motorola, Lenovo and Realme in the country had used similar methods.

This case may increase legal and compliance related problems for smartphone makers like Samsung and Xiaomi. In these reports, CCI’s Additional Director General, GV Siva Prasad has said, “Exclusivity in business is like a boycott. It is against the principles of free and fair competition as well as the interests of customers.” Xiaomi refused to comment on this, while other smartphone makers did not respond to requests sent for comment.

Amazon and Flipkart have not commented on these reports. CCI has said in these reports that during the investigation Amazon and Flipkart tried to avoid the allegations of exclusive launch, but officials have found that this method was being used a lot. According to data from market research firm Counterpoint, Samsung and Xiaomi have about 36 percent share in the country’s smartphone market. Last year the e-commerce market in the country was around $ 60 billion. This market is estimated to reach $ 160 billion by 2028.