Hello, it has been said in regulatory reports that big companies in the Smartphone industry have violated Antitrust laws, this includes Xiaomi, Samsung, and other big companies. Amazon and Flipkart have violated local competition laws, the Competition Commission of India (CCI) has found, Reuters has revealed.
Now CCI has published a 1,027-page report against Amazon. Along with Amazon, there is talk of Xiaomi, Samsung, Motorola, Realme, and OnePlus among the companies in this report. The same is the case with Flipkart. CCI has said in the 1,696-page report that Xiaomi, Samsung, Vivo, Lenovo, and Realme have also done the same thing. “Exclusive Phone Launches” includes all those companies that have violated competition laws.
Amazon and Flipkart have played down the allegations of exclusive launches, but officials have found this practice “rampant”. There was a big problem with these “Exclusive launches” that the retailers gave high preference to big companies, gave high priority, and gave special discounts, on top of everything this caused huge losses to the remaining retailers.
G.V. Siva Prasad, who is the additional director general of CCI, has written that exclusivity is an “anathema” in business and it is against the interest of consumers.
Recent data has shown that Xiaomi and Samsung control more than one-third share of the smartphone market. Most companies are dependent on foreign investments, which means that they keep prices low and get subsidized rates on services like marketing and warehousing.
In 2020, an investigation was started against Xiaomi, Amazon, and their sellers, which was filed by an affiliate of the country’s leading retailer association, Confederation of All India Traders, which has 80 million members. For some smartphone companies Commissions have asked for financial statements for 3 fiscal years till 2024.
Indian retailers have often complained against Amazon and Flipkart that they have launched exclusive phones only online, causing huge losses to offline retailers. Now compared to 2013, the sale of Smartphones online is increasing, because in 2013 this sale was only 14.5% and now this increase has come to 50%.
I wanted to tell you about this news from my blog, stay tuned to Hammer for the latest news!
