Mobile retailers in India have intensified their call for the government to prohibit popular Chinese smartphone brands like iQOO, Poco, and OnePlus from operating in the country. This demand follows reports indicating that e-commerce giants Flipkart and Amazon have allegedly breached local competition laws by favouring specific sellers on their platforms.
Allegations Against E-commerce Giants
The All India Mobile Retailers Association (AMIRA), which represents over 1.5 million mobile retailers, accuses these brands of engaging in unfair practices that harm local businesses and diminish government revenue, as reported by PTI. Retailers contend that these companies prioritise online sales through exclusive agreements with e-commerce platforms, severely limiting the availability of their products in physical stores. This approach allegedly fosters a grey market for mobile phones, undermining local retailers and leading to potential tax losses for the government.
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Calls for Suspension of Operations
The Confederation of All India Traders (CAIT) has joined the fray, urging the Competition Commission of India (CCI) to suspend operations of Flipkart and Amazon due to what they describe as predatory pricing strategies. CAIT Secretary General Praveen Khandelwal stated that the pricing tactics employed by these e-commerce platforms involve deep discounts and loss funding, which ultimately harms traditional retailers.
Khandelwal expressed concern about the perceived collaboration between e-commerce firms, brands, and banks, suggesting a cartel-like behaviour aimed at dominating the market. “We are not against e-commerce but we want a level playing field and fair business practices,” he said, emphasising the need for equitable competition in the marketplace, Times of India reported.
Additionally, AIMRA founder Kailash Lakhyani called for a temporary suspension of operations for Chinese brands such as OnePlus, Poco, and iQoo, arguing that these companies conduct trading activities without contributing value to the Indian economy. In a letter dated September 27, Lakhyani urged Khandelwal to escalate the matter to key government officials, including Commerce and Industry Minister Piyush Goyal and Finance Minister Nirmala Sitharaman.
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Lakhyani highlighted the importance of protecting local businesses and maintaining fair trading practices in India. He expressed hope that the government would take the necessary steps to address these concerns, ultimately supporting the livelihood of local retailers.