India accuses smartphone firms of colluding with Amazon and Flipkart, breaching antitrust laws

India has accused Samsung, Xiaomi, and other smartphone companies of colluding with Amazon and Walmart’s Flipkart to launch exclusive phones on those platforms, in breach of the country’s antitrust laws.

Regulatory reports viewed by Reuters reveal that the Competition Commission of India (CCI) conducted antitrust investigations which concluded that Amazon and Flipkart breached local competition laws. The violations involved favoring certain sellers, prioritizing specific listings, and offering major discounts on products, causing issues with other companies.

Which smartphone brands have been named in India’s antitrust report?

A 1,027-page report from the CCI alleged that Amazon and its affiliates colluded with five smartphone brands—Motorola, OnePlus, Realme, Samsung, and Xiaomi—to violate competition laws.

In a separate report regarding Flipkart, a 1,696-page report added that the Indian units of Samsung, Xiaomi, Motorola, Vivo, Lenovo and Realme carried out similar practices.

CCI’s additional director general, G.V. Siva Prasad, wrote that exclusivity in business is “anathema” and against fair competition and the interests of consumers.

Reuters cited internal documents from the CCI from last month, which showed that the Commission has requested certain smartphone companies to submit their financial statements for the three fiscal years leading up to 2024. The investigation into Amazon, Flipkart, and their sellers began in 2020 following a complaint by an affiliate of the Confederation of All India Traders, which represents 80 million members.

The next stage involves the CCI reviewing any objections, which could potentially lead to fines being imposed and for companies to change their business practices.

Both Amazon and Flipkart reportedly downplayed allegations of exclusive launches, but officials found the practice “rampant.”

In April, ReadWrite reported that Samsung had regained the top spot in global mobile phone sales after Apple’s decline, while Xiaomi came in third. Ryan Reith, group vice president at IDC, responsible for Worldwide Mobility and Consumer Device Trackers, stated at the time: “As the recovery progresses, we’re likely to see the top companies gain share as the smaller brands struggle for positioning.”

ReadWrite has reached out to Samsung, Amazon, and Xiaomi for comment.

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