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Xiaomi Requests CCI Retract Sensitive Report in Flipkart Antitrust Case

By  |  September 23, 2024
Xiaomi Requests CCI Retract Sensitive Report in Flipkart Antitrust Case

Chinese smartphone giant Xiaomi has requested India’s antitrust regulator, the Competition Commission of India (CCI), to withdraw a report that alleges both Xiaomi and Walmart-owned Flipkart violated competition laws. According to Reuters, the company argues that the report contains sensitive commercial data that should have been redacted before being shared with the parties involved in the case.

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    Xiaomi’s appeal could potentially delay the ongoing antitrust investigation, which was initiated in 2021. Per Finance Yahoo, this request mirrors a similar action in August, where the CCI withdrew a report on Apple after the U.S. tech company raised concerns about the inclusion of confidential business information in its investigation documents.

    In its application, Xiaomi stated that the CCI’s investigation report on Flipkart includes sensitive business data, specifically detailing the company’s model-wise sales figures. Such data, Xiaomi argues, is critical to its competitive positioning in the Indian market and should not have been disclosed without appropriate redaction, two sources familiar with the matter told Reuters.

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    Both Xiaomi and Flipkart have not yet commented on the matter, nor has the CCI responded to Reuters’ inquiries. While the CCI does not make these reports publicly available, they are shared with the parties involved in the case. If the watchdog decides to recall the report, the parties would be required to return the document, which would then undergo further review to ensure that any confidential information is properly redacted before it is reissued.

    Related: Samsung, Xiaomi Among Smartphone Brands Allegedly Involved in eCommerce Collusion In India

    The investigation centers around allegations that major e-commerce platforms, including Flipkart and Amazon, prioritized certain sellers and listings, giving them unfair advantages. The watchdog also found evidence of collaboration between these platforms and smartphone manufacturers like Xiaomi to launch exclusive products on their websites, as reported by Reuters earlier this month.

    Xiaomi’s concerns are specific to the data related to Flipkart. Per Finance Yahoo, the company is not contesting a separate report on Amazon, which also implicates Xiaomi in exclusive product deals that may have breached competition laws. However, sources revealed that Xiaomi is pushing for the CCI to demand the return of all copies of the report to ensure that the sensitive information is properly redacted and not misused.

    This is not the first time the CCI has encountered such issues. In a previous case involving Apple, the commission recalled an investigation report after the company complained that it contained confidential commercial information. The CCI’s report on Apple concluded that the tech giant had abused its dominant market position concerning its iOS app store. Apple has denied any wrongdoing.

    India’s smartphone market is highly competitive, with Xiaomi and South Korea’s Samsung controlling nearly 36% of the market, according to Counterpoint Research. Other major players include Vivo, Realme, and Motorola, all of which have also been implicated in the CCI’s investigation into exclusive product launches on Flipkart. The commission has criticized these practices, labeling them as anti-competitive and detrimental to consumer interests.

    Source: Finance Yahoo