Samsung, Xiaomi and other manufacturers have colluded with Amazon and Flipkart (owned by Walmart) in India. Smaller retailers do not have access to the new smartphones.
Samsung and Xiaomi are the two largest players in the Indian smartphone market Together, they occupy almost 36% of the market, and the Vivo brand accounts for another 19%. According to the consulting company Bain, the electronics retail market in India will exceed $160 billion by 2028, up from $57-60 billion in 2023.
Indian retailers have repeatedly accused Amazon and Flipkart, along with smartphone manufacturers, of launching exclusives online. As a result, store owners did not receive the latest models, and customers found them only on the websites of the retailers involved in the conspiracy Flipkart’s share of online phone sales in India in 2023 was 55%, Amazon — 35%.
An antitrust investigation conducted by the Competition Commission of India (CCI) found that Amazon and Flipkart violated local competition laws. The conspirators favored selected sellers, drastically undercut the cost of products, and thus harmed other companies.
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The CCI’s report on Amazon also found that the Indian subsidiaries of five companies – Samsung, Xiaomi, Motorola, Realme, and OnePlus – were involved in exclusive phone releases in collusion with Amazon and its affiliates, in violation of competition law. In the case of Flipkart, the CCI report says that the Indian subsidiaries of Samsung, Xiaomi, Motorola, Vivo, Lenovo, and Realme also engaged in similar practices. The companies have not yet responded to this.
«Exclusivity in business is a curse. It is not only against free and fair competition, but also against the interests of consumers,» wrote CCI Additional Director General GV Siva Prasad in both reports.
The reports also say that during the investigation, Amazon and Flipkart deliberately downplayed allegations of exclusive launches. However, officials found that this practice was widespread. The CCI also reported that both companies used their foreign investments to provide discounts on services such as warehousing and marketing for certain sellers.
The investigation’s findings are a major setback for Amazon and Flipkart in a key market where they have faced opposition from smaller retailers for years over obstacles to their offline businesses. The CCI will consider any objections to its findings from Amazon, Flipkart, and other interested parties in the coming weeks. After that, the commission may impose fines and order companies to change their business practices.
Source: Reuters