Samsung, Xiaomi, Motorola and others in hot water over alleged anti-competitive deals in India

Some major players in the mobile tech and e-commerce sectors might be facing trouble in India. Recent findings hint at possibly anti-competitive practices that have been going on for years.

India is putting Samsung, Xiaomi, and other big names in the hot seat

According to regulatory reports obtained by Reuters, Samsung, Xiaomi, and several other smartphone manufacturers allegedly conspired with Amazon and Walmart's Flipkart to launch products exclusively on the Indian versions of these e-commerce platforms, potentially violating antitrust laws.

The report states that the Competition Commission of India (CCI) has launched an investigation into Amazon and Flipkart, revealing that these e-commerce giants allegedly favored certain sellers over others. Reportedly, they not only pushed specific products to the forefront but also slashed prices, putting other companies at a disadvantage.

The CCI's extensive 1,027-page report on Amazon reveals that the Indian branches of five companies – Samsung, Xiaomi, Motorola, Realme, and OnePlus – were reportedly engaged in colluding with Amazon and its affiliates for exclusive phone launches, violating competition laws. Meanwhile, a separate 1,696-page report on Flipkart indicates that Samsung, Xiaomi, Motorola, vivo, Lenovo, and Realme's Indian units also took part in similar practices.


The crux of the problem with these "exclusive launches" is that major retailers were giving unfair advantages to big brands, such as prioritizing their listings and offering hefty discounts, which negatively impacted other sellers. Both CCI reports highlighted that during their investigations, Amazon and Flipkart tried to downplay the claims of exclusive launches, but officials discovered that this practice was widespread.

In the upcoming weeks, the CCI will look over any objections raised by Amazon, Flipkart, the retailer association, and the smartphone manufacturers regarding its findings. There is a chance the CCI could impose fines and require these companies to alter their business practices.

The investigation into Amazon, Flipkart, and their sellers kicked off in 2020, sparked by a complaint from the Confederation of All India Traders, the country's largest retailer association with 80 million members.

Indian retailers have long accused these e-commerce giants and smartphone brands of exclusive online launches, which they claim hurt local shops by depriving them of the latest models. For instance, earlier this year, over 150,000 stores in India threatened to stop selling OnePlus phones in protest.

As the second-largest smartphone market globally, India is crucial for smartphone manufacturers. Companies need to rethink their strategies if they want to maintain their foothold in this competitive landscape.