The Competition Commission of India (CCI) has found that top smartphone manufacturers, including Samsung and Xiaomi, colluded with e-commerce giants Amazon and Flipkart to exclusively launch products on their Indian websites, breaching antitrust laws.
According to regulatory reports, the CCI’s investigation revealed that the Indian units of Samsung, Xiaomi, Motorola, Realme, and OnePlus were “involved in the practice of exclusive” phone launches with Amazon, while Samsung, Xiaomi, Motorola, Vivo, Lenovo, and Realme engaged in similar practices with Flipkart.
The 1,027-page report on Amazon and the 1,696-page report on Flipkart, dated August 9, stated that these companies “deliberately downplayed” allegations of exclusive launches, but officials found the practice to be “rampant”.
“Exclusivity in business is anathema. Not only is it against free and fair competition, but also against the interest of consumers,” CCI’s additional director general G.V. Siva Prasad wrote in the reports.
The inclusion of smartphone makers in the case could increase their legal and compliance headaches. Xiaomi declined to comment, while the other smartphone makers did not respond to requests for comment. Amazon, Flipkart, and the CCI did not respond to requests for comment.
The findings are a major setback for Amazon and Flipkart in a key growth market where they have faced criticism from small retailers for hurting their offline businesses. India’s e-retail market is set to exceed $160 billion by 2028, up from $57-60 billion in 2023.
Boluwatife Enome
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