Mobile Retailers Demand Ban on Chinese-Owned Mobile Brands
Indian mobile retailers have called on the Central government to ban Chinese-owned mobile brands such as iQoo, Poco, and OnePlus, citing their alleged anti-competitive practices that harm local businesses and impact the national economy.
The All India Mobile Retailers Association (AIMRA), representing over 1.5 million mobile retailers across the country, has formally requested Commerce and Industry Minister Piyush Goyal and Finance Minister Nirmala Sitharaman to intervene and cancel the business licenses of these companies.
Chinese Brands Accused of Violating Fair Trading Norms
Retailers claim that these Chinese brands, owned by major corporations like Vivo, Xiaomi, and Oppo, bypass traditional distribution channels and engage in unfair agreements with e-commerce giants like Amazon, resulting in reduced sales for physical retail outlets. Such practices, they argue, disrupt the retail ecosystem and deny the government additional revenue through rotational GST from retail transactions.
AIMRA Seeks Government Intervention
“Despite CCI reports and persistent follow-ups, these companies continue to violate regulations by maintaining exclusive agreements with e-commerce platforms and refusing to distribute products through retail stores,” AIMRA Chairman Kailash Lakhyani stated. He highlighted that unauthorized diversions of products from e-commerce to retail channels significantly impact fund rotation and the exchequer.
Protecting Local Mobile Retailers
The association believes that strict regulatory actions are necessary to ensure fair trading practices and protect the interests of local businesses. Retailers insist that curbing these anti-competitive strategies will help create a level playing field, benefiting both the domestic market and the national economy.