Samsung has leveled accusations against India’s competition regulator, claiming that it unlawfully detained its employees and confiscated data during a raid linked to an antitrust inquiry involving Amazon and Walmart’s Flipkart, as indicated by a legal document. The South Korean conglomerate is currently involved in the Competition Commission of India’s (CCI) investigation, which concluded in August that Samsung and other smartphone manufacturers violated antitrust regulations by collaborating with Amazon and Flipkart to launch products exclusively online. In a legal filing submitted to the High Court in Chandigarh on October 11, Samsung seeks to overturn the investigation’s findings concerning its actions, asserting that the CCI unlawfully seized materials from its employees during a raid conducted in 2022 at one of Amazon’s suppliers.
According to Samsung’s 32-page filing, which remains confidential, three of its employees were present during the search when CCI officials detained them, confiscated their phones, and copied sensitive and privileged information. The Indian branch of Samsung Electronics contends that the entire search operation was clearly illegal and that any materials obtained should not be considered valid and must be returned immediately. Furthermore, Samsung insists that the CCI should be barred from utilizing or relying on the unlawfully obtained data. The CCI has responded by challenging Samsung and 22 other entities that have received similar injunctions from various high courts in India, and it recently requested the Supreme Court to consolidate all challenges, arguing that these companies are attempting to obstruct the investigation. The CCI’s inquiry revealed that both Amazon and Flipkart violated competition laws by favoring certain sellers on their platforms, a claim that both companies have consistently denied, despite ongoing complaints from traditional retailers regarding their aggressive discounting strategies and other business practices.
In its legal submission, Samsung contended that it was incorrectly determined to have violated competition regulations in collusion with Amazon and Flipkart, despite its cooperation with the regulatory authority and its role as a third-party provider of information in the matter. The involvement of smartphone manufacturers in the investigation concerning Amazon and Flipkart may exacerbate legal and compliance challenges for companies such as Samsung. The reports from the investigation conducted in August indicated that Samsung participated in the practice of launching exclusive smartphone models on Amazon and Flipkart, with the Competition Commission of India (CCI) stating that “exclusivity in business is anathema” and detrimental to the principles of free and fair competition. As per Counterpoint Research, Samsung ranks among the leading smartphone vendors in India, holding a 14% share of the market. Datum Intelligence further estimates that online sales accounted for 50% of all phone sales last year, a significant increase from 14.5% in 2013.
