Korean giant Samsung, the largest smartphone maker in India, has accused the Competition Commission of India (CCI) of conducting an illegal raid, detaining its employees, and seizing confidential data during an antitrust investigation involving e-commerce giants Amazon and Flipkart. A recent Reuters report, citing a legal filing, shows that the electronics giant asked the Punjab & Haryana High Court to quash evidence seized from its employees.
This matter started in August 2023, when CCI concluded that Samsung and other smartphone companies violated Indian antitrust laws by collaborating with big e-commerce players to launch products exclusively on their platforms. And, as per India’s competition watchdog, these sorts of exclusive launches allegedly limit consumers’ choices and badly influence competition in the smartphone market.
Samsung Contested CCI’s Findings
In response to these allegations, Samsung filed a 32-page petition in the High Court on October 11 through its Indian unit. In its petition, the company has firmly contested the findings. The South Korean giant claims that the CCI’s investigation methods were unlawful.
The whole scenario started in 2022 when CCI conducted a raid at the premises of one of Amazon’s vendors. During this raid, three Samsung employees – present there – were allegedly detained by CCI officials. The company claims that officials also seized their phones and the confidential data on those devices was copied illegally.
Based on these alleged claims, now the company has demanded that the CCI should be barred from using the seized data in its investigation. Samsung strongly argued that the raid conducted by the CCI was entirely unlawful, and the materials collected during the search should be excluded from the investigation and returned without delay.
Meanwhile, as a temporary relief, Samsung obtained an injunction from the High Court, halting the CCI’s proceedings against the company. However, the court has not yet ruled on Samsung’s request for the return of the seized data and to stop the CCI from using it in the case.
Interestingly, as part of the same investigation, CCI also raised allegations against Xiaomi, accusing the company of engaging in anti-competitive practices through exclusive online sales agreements with certain e-commerce platforms.
Just as a brief reminder, the CCI initiated an investigation into Amazon and Flipkart in 2020 following a complaint by the Confederation of All India Traders (CAIT). With over 80 million members, CAIT criticized the e-commerce giants for their exclusive phone launches. The trader’s body argued that such practices negatively impacted traditional retailers and affected fair competition.
