India's antitrust body recalls Flipkart investigation report after Xiaomi complaint

Xiaomi had raised concerns that the original report, which found Flipkart and certain sellers in violation of competition laws, contained proprietary data that should have been redacted.

By  Storyboard18Nov 6, 2024 10:04 AM
India's antitrust body recalls Flipkart investigation report after Xiaomi complaint
In August, the CCI similarly retracted a report into Apple after the company raised concerns about the disclosure of sensitive commercial secrets to certain parties involved in the investigation.

India’s Competition Commission (CCI) has retracted its investigation report into alleged competition law violations by e-commerce giant Flipkart, following a complaint from smartphone maker Xiaomi, Reuters report. The move marks the second time in recent months that the CCI has withdrawn a report due to concerns over the disclosure of sensitive commercial information.

According to the reports, Xiaomi had raised concerns that the original report, which found Flipkart and certain sellers in violation of competition laws, contained proprietary data that should have been redacted. The report, which was part of a lengthy investigation into the practices of e-commerce platforms, allegedly included Xiaomi’s confidential sales data, including model-specific figures, which the company claimed were commercially sensitive.

According to an internal CCI document dated October 1, the commission has instructed recipients of the original report to destroy it and submit an undertaking confirming its destruction to prevent further distribution. The document also stated that the CCI had issued a revised version of the report, although it did not clarify which specific changes had been made.

The investigation into Flipkart, as well as its competitor Amazon, has been ongoing since 2020. The CCI's probe found that both companies were giving preferential treatment to select sellers, manipulating product listings, and engaging in exclusive agreements with smartphone brands, including Xiaomi, Samsung, and Vivo. However, the investigation has been delayed as some of the companies involved, including Vivo and certain online sellers, have contested their inclusion in the probe, securing injunctions from the courts.

In August, the CCI similarly retracted a report into Apple after the company raised concerns about the disclosure of sensitive commercial secrets to certain parties involved in the investigation.

Neither Xiaomi nor Flipkart has issued a public comment on the latest developments, and the CCI has declined to respond to queries from Reuters regarding the recall. The situation underscores ongoing tensions around the handling of sensitive business information in high-profile antitrust investigations in India’s rapidly growing e-commerce sector.

First Published on Nov 6, 2024 10:04 AM

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