Mobile retailers urge govt to revoke Chinese brands’ licenses for anti-competitive practices: Report

AIMRA has sought the intervention of Commerce and Industry Minister Piyush Goyal and Finance Minister Nirmala Sitharaman to address the issue, Moneycontrol reported.

According to Kailash Lakhyani, Founder and Chairman of AIMRA, despite persistent follow-ups and findings by the Competition Commission of India (CCI), these companies continue to operate exclusively with e-commerce platforms like Amazon, bypassing traditional retail outlets.

"The unauthorized diversion of products from e-commerce to retail channels disrupts fund rotation and denies the exchequer the benefit of additional GST revenue," Lakhyani said in an interview with Moneycontrol.

In a letter dated September 27, AIMRA also highlighted that many Chinese companies use online platforms to support grey market activities, undermining local businesses and fair trade in India, the report said.

They pointed out that Vivo’s sub-brand iQoo is primarily sold through online platforms, leaving traditional retailers without access to their products.

The association emphasized the importance of protecting local businesses and creating a level playing field.

They noted that the CCI's recent report accused several Chinese brands and Samsung of collaborating with e-commerce giants like Amazon and Flipkart to launch exclusive product lines, violating competition laws.

AIMRA, in partnership with the Confederation of All India Traders (CAIT), also released a whitepaper suggesting the need for a stronger e-commerce policy framework to close regulatory loopholes, curb tax evasion, and tackle anti-competitive practices.

The paper proposed measures such as eliminating GST input credits for B2C transactions, banning exclusive cashback offers, suspending festival sales to prevent market manipulation, and introducing a luxury tax on high-end products sold online.