Samsung, Xiaomi, and other smartphone manufacturers have been accused of colluding with Amazon and Flipkart to launch products exclusively on the e-commerce platforms, in violation of India’s antitrust laws, according to regulatory reports from the Competition Commission of India (CCI) seen by Reuters.
The CCI’s investigation found that Amazon and Flipkart prioritized certain sellers, provided steep discounts, and favored specific product listings, which negatively impacted competition and other sellers in the market. The reports state that the Indian subsidiaries of five smartphone makers—Samsung, Xiaomi, Motorola, Realme, and OnePlus—were involved in launching phones exclusively on Amazon, thus breaching competition law. In Flipkart’s case, companies including Vivo and Lenovo were also named in similar practices.
The CCI’s findings are part of two comprehensive reports, one focusing on Amazon (1,027 pages) and the other on Flipkart (1,696 pages), both of which concluded that the e-commerce giants gave preferential treatment to certain smartphone brands. The investigations revealed that Amazon and Flipkart “deliberately downplayed” allegations of exclusive launches, though the practice was found to be widespread.
These accusations could bring legal and compliance challenges to both the smartphone makers and the e-commerce giants. Notably, Xiaomi declined to comment, and neither Amazon, Flipkart, nor the CCI have responded to the findings.
This investigation marks a significant development in India’s e-retail landscape, where Samsung and Xiaomi dominate with a combined 36% market share. The findings could disrupt business practices in an online sales market projected to exceed $160 billion by 2028.
The inquiry was initiated in 2020 after a complaint from the Confederation of All India Traders, representing 80 million members. Small retailers have long accused Amazon, Flipkart, and smartphone brands of using exclusive online launches to undermine offline businesses. The CCI noted that these practices have severely affected ordinary sellers and brick-and-mortar retailers, who received new phone models much later than online platforms.
As a result of the investigation, companies involved have been ordered to submit financial statements for the fiscal years leading up to 2024. The CCI will now review objections and may impose fines or require changes in business practices.
