- These brands conduct exclusive product launches with Amazon & Flipkart as per reports
Athira Sethu
Kochi, 16 September 2024
Smartphone manufacturers like Samsung and Xiaomi are facing allegations of colluding with e-commerce giants Amazon and Flipkart to launch products exclusively on their Indian websites, a report by Reuters said.
The Competition Commission of India (CCI) has found that Amazon and Flipkart violated competition laws by favouring certain sellers, prioritizing specific listings, and offering steep discounts.
This practice reportedly hurt other businesses and breached fair competition rules.
The CCI’s extensive reports, dated August 9, indicate that Samsung, Xiaomi, Motorola, Realme, and OnePlus engaged in exclusive product launches in collaboration with Amazon and Flipkart. The findings suggest these practices were against competition laws and could lead to increased legal and compliance issues for the involved companies, the Reuters report said.
Quoting CCI’s additional director general, G.V. Siva Prasad, the report said these were exclusivity practices, which undermine both fair competition and consumer interests.
The reports revealed that Amazon and Flipkart downplayed these exclusivity concerns during investigations, although officials found the practices widespread.
The CCI has ordered several smartphone companies to submit financial statements for the past three fiscal years. The investigation, which began in 2020 following a complaint from a major retailer association, could result in fines or required changes in business practices.
With India’s e-retail market expected to exceed $160 billion by 2028, these findings are a significant blow to Amazon and Flipkart.
The reports highlighted ongoing tensions between online and offline retailers, with exclusive online launches impacting traditional shopkeepers. For now, both Amazon and Flipkart, along with the smartphone companies involved, have not commented on the CCI’s findings, according to the Reuters report.
