ED Asks Smartphone Giants Apple, Xiaomi to Share Sales Data in Amazon, Flipkart Probe

Enforcement Directorate has asked for sales-related records from smartphone companies, including Apple and Xiaomi, as a part of its antitrust investigation against Amazon and Flipkart. The financial crime agency has sought the sales data of these companies mainly because the protectionist e-commerce laws of the country have been a subject of discussion in the ongoing India-US bilateral trade deal, Reuters reported, citing sources. 

ED is probing these smartphone companies’ data to find out if there are any financial contracts signed by them for online sales on e-commerce platforms. Although the investigation is ongoing, ED has approached these companies only to get information, and it is unlikely that they will be accused in the case, Reuters reported. 

“Eventually if there’s wrongdoing, there will be monetary penalties [on e-commerce companies],” an official told Reuters.

Also Read: Flipkart Follows PhonePe’s Path, Shifts Domicile to India Ahead of IPO

This development comes months after a separate antitrust probe against the two e-commerce platforms was completed. The two giants were found guilty of breaching antitrust laws by giving preference to select sellers on their platforms and also colluded with smartphone companies like Samsung and Xiaomi to exclusively launch products online. The earlier investigation had shown that the e-commerce giant had significant oversight over their sellers operations, including control over warehouses, inventory and profit margins. ED, in its probe, had also found discrepancies in the “Just in Time” (JIT) model of stock management used by the two e-commerce giants. 

ED’s move comes at a time when India’s smartphone market is booming, with Samsung and Xiaomi commanding 33% of the market share in 2024 and around 40% of their sales takes place online, according to Counterpoint Research. As per a report by consultancy firm Bain estimates, the country’s e-retail market is set to grow from $57-60 billion in 2023 to $160 billion by 2028.