Samsung claims that during a search, the Competition Commission of India (CCI) illegally detained company workers and took away sensitive information. Samsung and other smartphone makers are accused of breaking competition rules in this case, which is a part of an antitrust inquiry involving Amazon and Flipkart.
Samsung attempted to have the conclusions about its actions overturned in a court petition submitted to the Chandigarh High Court on October 11. According to the firm, CCI authorities arrested three Samsung employees, seized their phones, and obtained private information during a 2022 search at a vendor connected to Amazon. Samsung contends that the gathered evidence is inadmissible because the raid violated legal procedures.
According to Samsung’s submission, the entire search operation was clearly unlawful, and any information gathered should be quickly returned and not relied upon.
The High Court has not yet made a decision about the return of the confiscated data or the prohibition of its use, but it has given Samsung an injunction to halt CCI proceedings. Samsung argues that it was mistakenly accused of colluding with Amazon and Flipkart while really participating in the probe as a third party.
The CCI has accused the corporations of postponing the probe and challenged similar injunctions obtained by 22 other companies, asking the Supreme Court of India to combine all of these cases.
According to the CCI’s inquiry, Amazon and Flipkart violated competition regulations by favoring some vendors. According to the paper, exclusive product launches on these platforms by smartphone companies like Samsung are detrimental to free and fair competition.
Samsung contests these conclusions, claiming that it only gave the CCI information upon request. Companies like Samsung may face more difficult legal and regulatory issues if the inclusion of smartphone makers is confirmed.
According to Counterpoint Research, Samsung has a 14% market share and is one of the top smartphone brands in India. Exclusive contracts have become increasingly controversial in the Indian industry as a result of the transition towards internet phone purchases, which currently make up 50% of overall sales, up from 14.5% in 2013.
Now that the Supreme Court is involved, the legal dispute may decide how much authority the CCI has to carry out raids and gather evidence. The case also demonstrates the increased regulatory scrutiny of IT firms and their alliances with Indian manufacturing.
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