The Competition Commission of India (CCI) has accused major smartphone manufacturers, including Samsung and Xiaomi, of collaborating with e-commerce giants Amazon and Flipkart to exclusively launch products on their platforms, violating India's antitrust laws.
According to confidential regulatory reports obtained by Reuters, this collusion prioritised select sellers and heavily discounted products, disadvantaging competitors and breaching local competition regulations.
In separate reports - spanning over 1,000 pages for Amazon and nearly 1,700 for Flipkart - the CCI alleged that smartphone companies like Samsung, Xiaomi, Motorola, Realme, and OnePlus engaged in exclusive phone launches in partnership with Amazon and Flipkart, which broke competition law. The report on Flipkart also implicated Lenovo and Vivo.
The companies are now required to submit audited financial statements covering the last three fiscal years up to 2024.
The CCI’s findings mark a significant challenge for Amazon and Flipkart, which have faced scrutiny from small retailers in India for years. The local brick-and-mortar businesses have repeatedly claimed that exclusive online launches hurt their sales, as they received popular phone models much later than online consumers.
The investigation began in 2020, following complaints by the Confederation of All India Traders, which represents 80 million members. As part of its findings, the CCI highlighted that Amazon and Flipkart used foreign investments to subsidise services such as warehousing and marketing for a select group of sellers, further undercutting traditional retailers.
India's e-commerce market, currently valued at around $60 billion, is projected to grow to $160 billion by 2028. However, with Samsung and Xiaomi accounting for nearly 36% of the smartphone market in India, the CCI's accusations could lead to fines and mandatory changes in their business practices.
The companies have not yet commented on the allegations, while Amazon and Flipkart have also remained silent on the issue. The CCI is expected to review any objections to its findings in the coming weeks.