You may have heard that Chinese smartphone giant Xiaomi is urging India's competition authority to withdraw a report accusing Xiaomi and Walmart's Flipkart of violating competition laws. According to sources familiar with the situation, Xiaomi argues that the report contains sensitive commercial data that should not have been disclosed.
This move could potentially delay the ongoing antitrust investigation that has been underway since 2021. In an unusual turn of events last August, India's Competition Commission (CCI) recalled a similar report on Apple after the tech giant raised concerns over including confidential business information.
Xiaomi's concerns over sensitive information
In its official submission to the commission, Xiaomi claims that the report on Flipkart includes highly sensitive business data. This information, according to sources, was supposed to be redacted before being shared with other parties involved in the case.
One of Xiaomi's primary concerns is that the report reveals model-specific sales figures. Such data is critical to the company's competitive edge and could negatively impact its operations if exposed to the public or competitors. These figures are confidential and play a crucial role in the company's strategy and market positioning.
Report redactions and investigation impact
The CCI's investigation reports are not typically made public. Instead, they are shared only with the concerned parties. If a recall is approved, all involved parties must return the report. It would then undergo further review to ensure all sensitive information is appropriately redacted before reissued.
Earlier this month, the CCI's investigation revealed that Amazon and Flipkart preferred select sellers and prioritised certain listings, which led to accusations of collusion with companies like Xiaomi. This enabled exclusive smartphone launches on their respective platforms, a practice that was seen as harmful to fair competition. The antitrust report has noted that this approach undermined the principle of free and fair competition, which could be detrimental to consumers.
Data from Counterpoint Research highlights that Xiaomi and South Korea's Samsung hold a substantial 36% share of India's smartphone market, with the Chinese brand Vivo following at 19%.
Xiaomi's stance on Amazon's report
Xiaomi has not expressed concern over a similar antitrust report involving Amazon. In that instance, investigators also accused the two companies of working together to violate competition laws by launching Xiaomi's products exclusively on Amazon's platform. However, sources close to the matter indicate that Xiaomi's primary focus is on the Flipkart report, as the data disclosed in that report is far more sensitive.
The company is seeking a directive from the Competition Commission to recall all copies of the report and destroy any that have been distributed. Once done, the watchdog can review the document and ensure that confidential business details are appropriately redacted.
The CCI previously took similar action when Apple raised concerns over a report claiming the tech giant misused its dominant position in the app store market on its iOS platform, allegations Apple has denied.
The competition watchdog's report on Flipkart also mentioned that other major smartphone brands, including Xiaomi, Samsung, Motorola, Vivo, Lenovo, and Realme, were found to have engaged in exclusive product launches on Flipkart. The report stated that these practices went against fair competition and could negatively affect consumer interests.
