China’s iQoo, Poco, and OnePlus are among the smartphone brands that the All India Mobile Retailers Association (AIMRA) has demanded be banned for allegedly participating in anti-competitive behavior.
According to AIMRA, these firms avoid traditional retail channels by virtue of exclusive distribution arrangements they have with e-commerce giant Amazon.
Read on to find out all the details!
AIMRA Demands Ban of China’s iQoo, Poco, OnePlus
The Vivo sub-brand iQoo is singled out as an illustration of this approach since, in spite of requests for broader retail distribution, it mostly sells its products online through Amazon, Flipkart, and its own online store.
Removing the licenses of these businesses is something that AIMRA has requested Finance Minister Nirmala Sitharaman and Commerce & Industry Minister Piyush Goyal to intervene on behalf of over 1.5 million mobile merchants.
The founder and chairman of AIMRA, Kailash Lakhyani, said that despite inquiries and findings from the Competition Commission of India (CCI), these businesses are still breaking the law by keeping exclusive contracts with Amazon.
Kailash Lakhyani stated, “Despite CCI reports and persistent follow-ups, these companies continue to violate regulations by maintaining exclusive agreements with e-commerce platform Amazon and refusing to distribute products through retail stores.”
AIMRA’s Concerns
AIMRA expressed concerns about the following: these exclusive online contracts promote illicit product diversion from online to offline channels, marginalize retailers, lower tax revenue through grey market sales, and limit consumer choice by not offering products offline.
Vivo was singled out by AIMRA for further criticism, claiming that it was complicit in these actions and that the CCI had reported it for breaking fair trade laws.
Retailers have been unable to obtain direct billing choices from iQoo and Vivo, and despite repeated efforts, AIMRA states that progress on addressing these concerns has been poor.
As per the report, “Additionally, Vivo’s name has surfaced as an offender in the latest findings by the Competition Commission of India (CCI). Despite our persistent efforts, we have encountered continuous delays and no progress in billing retailers.”
