Xiaomi and Samsung accused of colluding with Amazon and Flipkart

• Smartphone makers and e-commerce players have come under the scanner of CCI.
• Smartphone makers have been accused of colluding with Amazon and Flipkart.
• Exclusive launches and steep discounting are among the practices being investigated.

The Competition Commission of India (CCI), the antitrust watchdog in the country has reportedly accused smartphone makers such as Xiaomi and Samsung of colluding with e-commerce players Amazon and Flipkart.

According to a report by Reuters, smartphone makers have been accused of colluding with e-commerce players to launch products on their platforms exclusively.

The smartphone makers have also been accused of violating competition laws by giving preference to select sellers, prioritising listings, steeply discounting products and more.

CCI submits report on Amazon and Flipkart

The CCI has reportedly submitted a 1,027-page report on Amazon which has accused Samsung, Xiaomi, OnePlus, Motorola and Realme of being “involved in the practise of exclusive phone launches” and “colluding” with Amazon, breaking competition law.

Similarly, the watchdog has submitted a 1,696-page report on Flipkart that has accused Samsung, Xiaomi, Lenovo, Motorola and Vivo of “colluding”.

"Exclusivity in business is anathema” CCI's additional director general G.V. Siva Prasad said, as per the report. “Not only is it against free and fair competition but also against the interest of consumers," Prasad added.

While the e-commerce giants Amazon and Flipkart reportedly downplayed the practice of launching “exclusive” smartphones, the practice was found to be “rampant” during the investigation.

India’s e-commerce market is expected to grow from $57 billion in 2023 to over $160 billion in 2028. Smartphone maker Vivo currently has a market share of 19% in smartphone shipments, followed by Samsung and Xiaomi, which have a combined market share of over 35%.

As per a recent report by the International Data Corporation, the shipments to online channels grew by 8% year-on-year to reach 50% in Q2 2024, up from 47% in Q2 2023.

As per the report, the exclusive launches pushed customers towards these online platforms and harmed small retailers. The investigation stems from a complaint lodged by the Confederation of All India Traders (CAIT) in 2020.

The traders body, which has over 80 million members had accused the smartphone makers and e-commerce players of disadvantaging offline retailers and favouring online exclusive launches.

We should know more about the investigation and its impact on smartphone makers, e-commerce players and the future of exclusive launches in the coming weeks.

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