Samsung, Xiaomi, OnePlus and Other OEMs Caught Breaching Antitrust Laws

A recent investigation by India’s Competition Commission (CCI) has uncovered alleged antitrust violations involving some of the world’s largest smartphone manufacturers and e-commerce platforms.

According to a Reuters report, the CCI found evidence that Amazon and Flipkart had given preferential treatment to select phone makers, potentially harming competition in the Indian market.

The CCI’s findings are detailed in two extensive reports. A 1,027-page document focuses on Amazon, accusing the e-commerce giant of colluding with major brands including Samsung, Xiaomi, Motorola, Realme, and OnePlus. The report alleges these companies engaged in “exclusive phone launches,” a practice that violates Indian competition law.

A separate 1,696-page report examines Flipkart’s practices, implicating Samsung, Xiaomi, Motorola, Vivo, Lenovo, and Realme in similar anticompetitive behavior.

G.V. Siva Prasad, the CCI’s additional director general, emphasized the seriousness of these findings. In the report, Prasad states that exclusivity in business practices is “anathema” to fair competition and detrimental to consumer interests.

The investigation reveals that retailers like Amazon and Flipkart offered prioritized listings and substantial discounts to select smartphone manufacturers. These actions, according to the CCI, have had a detrimental effect on other retailers in the market.

Despite attempts by both Amazon and Flipkart to downplay allegations of exclusive launches, CCI officials found evidence that the practice was “rampant.”

The CCI report also highlights how these large companies leveraged foreign investments to maintain artificially low prices. Additionally, they provided subsidized rates for services such as warehousing and marketing, but only to a select group of sellers.

The regulatory body will now review any objections raised by the implicated companies. Depending on the outcome of this review, the CCI could potentially levy fines against the offending parties and mandate significant changes to their business practices.

This investigation stems from long-standing complaints by smaller Indian retailers. These local businesses have consistently accused e-commerce giants Amazon and Flipkart of unfair practices, particularly the exclusive online launches of new smartphone models.

This strategy, they argue, has severely disadvantaged brick-and-mortar stores, preventing them from accessing the latest devices and effectively pushing customers toward online purchases.

In 2013, online channels accounted for just 14.5% of all phone sales in India. By the time of the latest report, that figure had skyrocketed to 50%, underscoring the growing dominance of e-commerce platforms in the country’s smartphone market.