India’s Antitrust Body Withdraws Report on Flipkart Amid Data Privacy Concerns

India’s Competition Commission (CCI) has recently withdrawn an investigative report on Walmart-owned Flipkart, following complaints from China’s Xiaomi regarding the handling of sensitive data, per a report from Reuters. This move marks the second time in recent months that the CCI has rescinded a report due to concerns over the disclosure of commercial information; in August, a similar report on Apple was recalled under comparable circumstances.

According to sources and an internal document reviewed by Reuters, Xiaomi had raised objections to the report, which found that Flipkart, along with certain sellers and smartphone companies, had allegedly violated India’s competition regulations. Xiaomi contended that specific data on model-wise sales—considered proprietary information—was mistakenly included in the report, compromising the company’s competitive position.

The CCI’s latest directive instructs all recipients of the withdrawn Flipkart report to destroy copies and to provide written confirmation to prevent any further dissemination. The agency explained that some sensitive data was “inadvertently” included, though it has yet to clarify the exact amendments made to the newly issued report. Both the CCI and Flipkart have refrained from commenting on the development, while Xiaomi declined to provide further statements on the matter.

Related: Online Sellers Challenge Indian Antitrust Investigation Against Flipkart and Amazon

The CCI’s investigation into Flipkart and other e-commerce entities, initiated in 2020, found that both Flipkart and its main rival Amazon favored certain sellers and prioritized exclusive listings, potentially stifling competition. Reuters noted that the watchdog accused these platforms of collaborating with major smartphone brands like Xiaomi, Samsung, and Vivo to launch products exclusively on their websites, bypassing other retail channels.

This latest recall mirrors the CCI’s August decision regarding an antitrust report on Apple. In that instance, Apple had raised similar concerns about commercial secrets being improperly shared with third parties involved in the probe.

As India’s digital market continues to grow, the CCI’s approach to data privacy and competition regulations is coming under increased scrutiny.

Source: Reuters