Calls for Action to Protect Local Businesses and Ensure Fair Trading Practices

Mobile retailers across India are intensifying their demands for the central government to prohibit Chinese-owned smartphone brands—specifically iQoo, Poco, and OnePlus—from operating within the country. The All India Mobile Retailers Association (AMIRA), which represents over 1.5 million mobile retailers, has cited concerns over anti-competitive practices that allegedly harm local businesses and result in significant financial losses for the government.

A Unified Front Against Unfair Practices

In a letter addressed to Commerce and Industry Minister Piyush Goyal and Finance Minister Nirmala Sitharaman, AMIRA called for the cancellation of licenses for these companies. Kailash Lakhyani, Founder and Chairman of AMIRA, emphasized that the brands maintain exclusive agreements with e-commerce platforms like Amazon, limiting their products’ availability through traditional retail channels. This strategy, he argues, undermines local retailers and disrupts the proper flow of goods and tax revenues.

Highlighting Regulatory Violations

Lakhyani pointed to a concerning trend in which brands, particularly iQoo, predominantly sell their products online, sidelining brick-and-mortar retailers. “Despite ongoing investigations into Vivo, which owns iQoo, and the findings of the Competition Commission of India (CCI), we see little progress in addressing these violations,” he stated. The CCI has reported that several Chinese smartphone manufacturers, along with Samsung, have engaged in anti-competitive collaborations with e-commerce platforms.

Implications for the Local Economy

The association argues that these practices restrict market access for local traders and deprive consumers of their bargaining rights. “The current model results in minimal contributions to the Indian economy, as earnings are retained within exclusive distribution channels,” Lakhyani added. A recent CCI report confirmed that brands have been violating local competition laws by giving preferential treatment to select sellers on e-commerce platforms.

A Call for Comprehensive Policy Reform

To address these issues, AMIRA, in collaboration with the Confederation of All India Traders (CAIT), has proposed a comprehensive e-commerce policy framework. Their recently released whitepaper suggests eliminating GST input credits for B2C transactions, banning exclusive cashback offers, and suspending e-commerce festival sales to prevent market manipulation. Furthermore, they advocate for the introduction of a luxury tax on high-end products sold online to level the playing field between online and offline retailers.

A Fight for Fair Competition

As the debate over the future of mobile retail in India intensifies, the call for intervention from the government aims to protect local businesses and ensure a fair trading environment. With significant implications for the smartphone market and the broader economy, the outcomes of these discussions could reshape the landscape for both retailers and consumers alike.