India’s financial crime agency has reportedly requested sales data and other related documents from major smartphone manufacturers, including Apple and Xiaomi, as part of an ongoing investigation into Amazon and Flipkart, the latter being owned by Walmart, according to sources familiar with the situation who spoke to Reuters.
This inquiry arrives amid trade negotiations between India and the United States, where e-commerce regulations in India have surfaced as a focal point. According to an Indian official, U.S. authorities have long advocated for policy changes to facilitate a more open e-commerce environment.
The Enforcement Directorate, responsible for investigating financial crimes, has been scrutinizing Amazon and Flipkart on suspicions of violating laws that prevent foreign e-commerce platforms from managing and controlling the inventory of products listed on their sites. Under Indian regulations, these companies are permitted only to serve as marketplaces connecting buyers and sellers.
Local small traders have expressed concern that such practices, coupled with aggressive online discounts, have negatively impacted traditional mobile phone retail businesses. In response, Amazon and Flipkart assert that they adhere to all applicable Indian laws.
Recently, the Enforcement Directorate reached out to several smartphone companies, including Apple and Xiaomi, requesting data concerning their online sales. This information request was reported by three industry insiders and a senior Indian government official, all of whom wished to remain anonymous due to the sensitivity of the investigation.
One source indicated that the agency is investigating the relationships between smartphone manufacturers and the e-commerce giants, seeking any financial agreements related to online sales.
Notably, Apple was informed of the agency’s requests back in March, according to a source.
While Apple, Amazon, and Flipkart did not provide immediate comments regarding the inquiry, the Enforcement Directorate also did not respond to requests for information, and Xiaomi chose not to comment on the matter.
According to a Bain & Company study, India’s e-commerce market is projected to surpass $160 billion (approximately ₹13,62,590 crores) by 2028, increasing from an estimated $57-$60 billion (roughly ₹4,85,459 crores to ₹5,11,010 crores) in 2023.
The government official noted that the smartphone companies were approached solely for information-gathering purposes, suggesting it is unlikely they would face accusations in the current investigation, although it remains active.
If any wrongdoing is identified, the official indicated there might be monetary penalties imposed on the e-commerce platforms involved.
In a related development last year, an independent antitrust investigation found that Amazon and Flipkart had violated competition laws by favoring certain sellers on their platforms and allegedly colluding with companies like Samsung and Xiaomi for exclusive product launches online.
These companies have yet to respond to the results of the antitrust investigation, which is still ongoing.
Data from Counterpoint Research reveals that Samsung and Xiaomi combined accounted for nearly 33 percent of the Indian smartphone market in 2024, while Apple’s share stood at seven percent. Approximately 40 percent of smartphone sales in India occur online.
A 2021 investigation by Reuters based on internal documents from Amazon indicated that the company maintained a significant level of control over the inventory of its leading sellers. Amazon has consistently denied any wrongdoing.
© Thomson Reuters 2025
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
