 "OnePlus 12 series")
Mobile retailers, represented by the All India Mobile Retailers Association (AIMRA), called upon the Competition Commission of India (CCI) on Thursday to revoke the licences of smartphone brands POCO and OnePlus, citing anti-competitive trade practices.
In a letter sent to CCI chairperson Ravneet Kaur, the AIMRA, which represents over 150,000 mobile retailers across the nation, highlighted that the smartphone brands are violating national regulations and statutes, attributing them as the primary source of various trade issues, according to a report in the Financial Express (FE).
The association's communication to the CCI chairperson follows its allegations against POCO and OnePlus for participating in monopolistic and anti-competitive business practices, prioritising online sales channels.
The report cited Kailash Lakhyani, founder chairman of AIMRA, as saying, "The actions taken by the CCI to identify and address malpractices within e-commerce platforms and the collusion with mobile phone manufacturers are crucial in preserving the integrity of the retail ecosystem. We have faith that strict actions and penalties will be taken against violators to maintain a level playing field and fair competition."
In a letter sent last month to Himanshu Tandon, country head of POCO India, the AIMRA expressed concerns regarding POCO's approach, suggesting a potential collaboration with e-commerce platforms to distribute products via unauthorised channels. The report stated that this practice, as outlined in the letter, bypasses legitimate distributors and avoids tax obligations.
Retailers said that due to the absence of the company's products in mainline (offline) retail outlets, numerous informal offline retailers and individuals procure them from e-commerce platforms at discounted rates, subsequently reselling these products to consumers.
Numerous retailers across India have stopped selling OnePlus phones since May 1. This decision stems from various factors, including OnePlus' lack of professionalism toward offline retailers, price inconsistencies between online and offline platforms, a less favourable margin structure, and considerable delays in claim settlements, the report said.
