ED Requests Data From Apple and Xiaomi as Part of Amazon, Flipkart Investigation: Report

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 Background: Why ED Is Watching Amazon & Flipkart

The ED has been investigating Amazon and Flipkart for years, probing whether the platforms illegally stocked and controlled inventory rather than acting purely as marketplaces, which is prohibited under India’s foreign-direct-investment rules.


Small, brick-and-mortar traders have claimed that deep online discounts and alleged preferential treatment of select sellers have hurt their businesses.

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What Data the ED Has Requested

  • Sales Figures & Contracts: In recent weeks, the ED formally reached out to Apple and Xiaomi seeking detailed online-sales numbers and any financial or exclusivity agreements they’ve signed with Amazon and Flipkart.

  • Timeline: Apple reportedly received its request in March 2025, while Xiaomi’s was also dispatched around the same time.

  • Purpose: According to a senior Indian official, these requests are solely for information gathering, and the smartphone makers are not themselves targets of the probe.

Trade-Talks Context

This inquiry coincides with India–U.S. trade negotiations, where American officials have long pushed for wider access to India’s booming e-commerce market.
Protectionist e-commerce rules—barring foreign platforms from holding or pricing inventory—have been a sticking point in those discussions.

Stakes for the Smartphone Market

  • Skyrocketing Online Sales: Nearly 40% of all smartphones in India are now sold online, making this a critical channel for Apple, Xiaomi, Samsung and others.

  • Market Shares: In 2024, Samsung and Xiaomi together commanded roughly 33% of the Indian smartphone market, with Apple at about 7%.

  • Future Growth: India’s e-retail sector is projected to expand from around $57–60 billion in 2023 to over $160 billion by 2028.

Google under the Microscope

Android TV Settlement

In 2020, the CCI received complaints that Google abused its dominance in the Android TV space by forcing OEMs to pre-install its full suite of apps and blocking alternative OS forks.
Earlier this year, Google agreed to a ₹20.24 Cr settlement, under which it will offer standalone licenses for Play Store and Play Services—and notify partners they may ship devices without Google apps.


Android & Play Store Penalties

In October 2022, the CCI slapped Google with two combined fines of ₹2,274.2 Cr for abusing its dominant position in the Android ecosystem—one case targeting Android OEM agreements and another on Play Store self-preferencing .
Earlier this year, India’s appellate tribunal (NCLAT) reduced one of those penalties by 75%, bringing it down to ₹217 Cr, though the broader antitrust findings remain intact.


Apple’s App-Store Practices

In-App Payment Probe

Since December 2021, the CCI has investigated Apple for allegedly forcing developers to use its in-app purchase system—charging up to 30% fees—and thus stifling competition in the iOS app market.
Apple denies wrongdoing and highlights its smaller market share in India, but CCI’s senior officials are reviewing the detailed findings before a final order is issued.


Meta (WhatsApp) Privacy-Competition Clash

In November 2024, the CCI imposed a ₹213.14 Cr fine on Meta for rolling out WhatsApp’s updated privacy policy on a “take-it-or-leave-it” basis, finding it created unfair entry barriers for competitors by tying data-sharing to mandatory acceptance .
The regulator also barred WhatsApp from sharing user data with other Meta entities for advertising purposes for five years—a separate $25.4 M order that underscores India’s strict approach to data-competition interactions

What Might Happen Next

Legal experts expect that if the ED uncovers evidence of inventory control or exclusive deals, monetary penalties could be levied against Amazon and Flipkart .
Meanwhile, Apple and Xiaomi will likely continue cooperating, as they’re not under direct suspicion—only providing data to help the ED’s broader investigation.


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