New Delhi, September 15: Samsung and Xiaomi are reportedly accused of having a secret agreement with Amazon and Flipkart. These companies are alleged to have worked closely with the two major e-commerce platforms, Amazon and Flipkart, potentially violating competition laws. The companies allegedly engaged in practices that gave them a competitive benefit, disadvantaging other sellers and competitors.
As per a report of Reuters, Samsung, Xiaomi and other smartphone companies have been accused of collusion with Amazon and Flipkart. Antitrust investigations conducted by the Competition Commission of India (CCI), reportedly found that certain smartphone companies collaborated with Amazon and Flipkart to release their products by violating local competition laws. The investigations reportedly revealed that Amazon and Flipkart gave preference to specific sellers, prioritised certain listings, and offered significant discounts, which negatively impacted other companies. Amazon Rufus AI Chatbot Rolling Out in India; Check Details and Know How To Use Rufus AI.
According to reports, the Competition Commission of India (CCI) revealed that companies like Samsung, Xiaomi, Realme, Vivo, Motorola, and Lenovo in the case of Walmart's Flipkart, and Samsung, Xiaomi, Realme, OnePlus, and Motorola, in the case of Amazon, were involved in similar practices. These practices included collaborating with Amazon and Flipkart to launch their smartphones exclusively on their respective Indian e-commerce websites.
The CCI's report stated that this collaboration was in violation of competition laws, as it created unfair advantages and limited competition in the market.
GV Siva Prasad, the additional director general of the Competition Commission of India (CCI), expressed his observations regarding Amazon and Flipkart and reportedly stated, "Exclusivity in business is anathema. Not only is it against free and fair competition but also against the interest of consumers." Netflix App To Discontinue Support for Older iPhones and iPads; Check Details and Know Why.
According to reports data from Counterpoint Research, Samsung and Xiaomi are among the largest smartphone companies in India. Together, they hold almost 36 per cent of the market share, while Vivo is holding around 19 percent market share. As of now, Samsung, Xiaomi, and other smartphone makers, as well as Amazon and Flipkart, have not yet responded to these reports.
(The above story first appeared on LatestLY on Sep 15, 2024 11:48 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).