India's mobile retailers call for banning iQoo, Poco, OnePlus, accusing anti-competitive practices: Report

The All India Mobile Retailers Association (AIMRA), representing over 1.5 million mobile retailers, has asked to ban iQoo, Poco, and OnePlus

The All India Mobile Retailers Association (AIMRA) has asked for a ban on Chinese smartphone brands iQoo, Poco, and OnePlus, accusing them of anti-competitive practices through exclusive distribution agreements with e-commerce giant Amazon, thereby bypassing traditional retail channels, according to a Business Today report.

AIMRA specifically says iQoo, a sub-brand of Vivo is a prime example of all the aforementioned practises as it mainly sells its products through online platforms like Amazon, Flipkart, and its own online store, despite repeated requests for wider retail distribution (Vishal Mathur/ HT)

AIMRA, which represents over 1.5 million mobile retailers has now, sought an intervention from Commerce and Industry Minister Piyush Goyal and Finance Minister Nirmala Sitharaman, asking them to cancel the licenses of these companies.

“Despite CCI reports and persistent follow-ups, these companies continue to violate regulations by maintaining exclusive agreements with e-commerce platform Amazon and refusing to distribute products through retail stores," the report quoted Kailash Lakhyani, Founder and Chairman of AIMRA as saying.

Issues flagged by AIMRA:

AIMRA raised the issues of retailers being marginalised due to the exclusive online distribution contracts, reduced tax revenue for the government through grey market activities and online-only sales, limited consumer choices due to lack of offline availability, and unauthorised product diversion from online to offline channels, which disrupts the flow of funds and undermines fair trade practices.

AIMRA's statements on iQoo

AIMRA specifically says iQoo, a sub-brand of Vivo is a prime example of all the aforementioned practises as it mainly sells its products through online platforms like Amazon, Flipkart, and its own online store, despite repeated requests for wider retail distribution, according to the report.

“Additionally, Vivo’s name has surfaced as an offender in the latest findings by the Competition Commission of India (CCI),” the report quoted Lakhyani as saying. "Despite our persistent efforts, we have encountered continuous delays and no progress in billing retailers."