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Exclusive Launches Under Fire: ED Investigates Xiaomi and Apple Links to Seller Bias on E-Commerce Platforms
India’s Enforcement Directorate (ED) has turned its lens on two major smartphone makers, Apple and Xiaomi, in a growing investigation into the e-commerce practices of Amazon and Flipkart.
This marks a sharp escalation in a probe that has lingered for years, now gaining new urgency as trade discussions between India and the United States inch toward conclusion.
Formal Requests for Data and Contracts
Sources familiar with the matter confirm that the ED has recently sent formal requests to Apple and Xiaomi, seeking access to sales figures, financial contracts, and internal communications.
The aim is to uncover whether these companies engaged in special arrangements with Amazon or Flipkart that could breach India’s foreign investment rules.
E-Commerce Rules and Past Violations
These rules require e-commerce platforms to act only as neutral marketplaces. They cannot hold inventory or directly influence product pricing.
However, past findings, including a 2024 antitrust report, suggest Amazon and Flipkart favored select sellers and coordinated with brands such as Samsung and Xiaomi for exclusive launches. These practices allegedly undermined fair competition, sparking protests from small traders across the country.
Apple and Xiaomi Under Watch, No Charges Yet
Apple received the ED’s official request in March. Xiaomi has also been approached. Neither company faces charges yet, but both are under the spotlight as data providers.
If financial deals show signs of collusion or preferential treatment, the consequences for Amazon and Flipkart could be serious. Penalties or fresh regulatory restrictions may follow.
Tightening Regulatory Mood in India
For Apple and Xiaomi, this inquiry reflects the shifting mood of Indian regulators toward stricter compliance. Even without direct accusations, the data demands signal heightened scrutiny of how global tech players conduct business in India.
Trade Talks with the US May Be Affected
The investigations can even change the dynamics of ongoing trade negotiations with the US. US negotiators have been pushing for fewer restrictions on e-commerce. At the same time, India appears to be very intent on protecting its digital marketplace and small retailers against what it perceives as unfair dominance.
High Stakes in a Growing Market
The stakes are high. Online channels already account for 40% of smartphone sales in India. Xiaomi holds 15% of the market, Samsung 18%, and Apple 7%, according to Counterpoint Research. With the sector projected to cross $160 billion by 2028, the outcome of this probe could alter market dynamics.
Silence from Tech Giants and Authorities
Both Apple and Amazon sought no comments. Responded Xiaomi- No way. The ED held its silence in the exercise of confidentiality. No official word either.
India Sends a Clear Message to Global Tech Players
While India regains control over its digital economy, the expanding investigation into possible e-commerce realities sends a loud message. Play fair, for the giants must, and scrutiny will loom large.