Some big smartphone companies in the country may get into trouble. The Competition Commission of India (CCI) has accused Samsung, Xiaomi and other smartphone makers of violating competition laws by tying up with e-commerce companies Amazon and Flipkart. These smartphone makers had launched their products exclusively on the websites of e-commerce companies in the country, which is a violation of competition laws.

The investigation conducted by CCI had found that Amazon and Flipkart had caused loss to other companies by giving priority to selected retailers and offering huge discounts. Reuters on Amazon CCI Quoting the report, it has been said that the units of Samsung, Xiaomi, Motorola, Realme and OnePlus in the country had launched exclusive smartphones in alliance with Amazon and its associated firms. This is a violation of competition law. Apart from this, the CCI report on Flipkart states that units of Samsung, Xiaomi, Motorola, Lenovo and Realme in the country had used similar methods.

In this case, legal and compliance related problems for smartphone makers like Samsung and Xiaomi may increase. In these reports, CCI’s Additional Director General, GV Siva Prasad, has said, “Exclusivity in business is like a boycott. It is against the reputation of free and fair competition as well as the interests of customers.” Xiaomi declined to comment, while other smartphone makers did not respond to requests for comment.

Amazon and Flipkart have not commented on these reports. CCI has said in these reports that during the investigation, Amazon and Flipkart had tried to avoid the allegations of exclusive launch but the officials have found that this method was being used a lot. According to data from market research firm Counterpoint, Samsung and Xiaomi have about 36 percent share in the country’s smartphone market. Last year the e-commerce market in the country was worth about $60 billion. This market is estimated to reach $160 billion by 2028.