As global smartphone sales increase, there has been a significant rise in advertising and regulatory scrutiny. Samsung and other smartphone brands, in collaboration with platforms like Amazon, are selling their devices exclusively through these platforms, leading to unfair competition. In India, it has been revealed that Samsung, Xiaomi, and many other brands are now under investigation for this. Here are the details…
Brands like Samsung, Xiaomi, and vivo found to have violated competition laws
It has been reported that companies working with platforms like Amazon and Flipkart, offering select devices exclusively through these platforms, have violated trust and competition laws in India. These allegations could lead to tough times for the phone manufacturers involved.
According to reports, brands like Samsung, Motorola, Realme, OnePlus, vivo, and Xiaomi collaborated with online retail platforms such as Amazon to launch their selected smartphones. This eliminated competition by drawing all customers to these sites, resulting in unfair competition and a loss of market trust.
Investigations conducted by the Competition Commission of India (CCI) revealed that Samsung and other brands prioritized certain retailers, thereby violating laws. A 1,027-page report highlighted that Amazon worked with five manufacturers—Motorola, OnePlus, Realme, Samsung, and Xiaomi—while a separate 1,696-page report showed that Flipkart collaborated with Lenovo, Motorola, Realme, Samsung, vivo, and Xiaomi.
These preferential treatments, especially in the tech sector, have caused unfair competition. Some of the accused brands have been asked to present records spanning three financial years, including 2024. As the investigation progresses, heavy fines could be imposed on these brands.
What do you think about this situation? Feel free to share your thoughts in the comments!
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