CCI Accused By Samsung Of Detaining Employees, Seizing Data Unlawfully

CCI Accused By Samsung Of Detaining Employees, Seizing Data Unlawfully

Claiming that the actions were illegal, the South Korean giant sought to quash the investigation's findings

Samsung has accused the Competition Commission of India (CCI) of unlawfully detaining its employees and seizing data in an antitrust investigation raid of Amazon and Flipkart.

In August, after an investigation, India's competition watchdog concluded that the South Korean giant and other smartphone companies broke anti-trust laws by colluding with Amazon and Flipkart of Walmart, to launch products online exclusively.

Recently, Samsung approached the High Court of Punjab and Haryana to quash the investigation findings. It argued that the CCI had illegally seized material from its employees during a 2022 raid at one of Amazon's vendors.

In a 32-page statement, the company added that three Samsung employees were nearby when the officials detained them, seized their phones and copied all confidential and privileged data.

The Indian unit of Samsung Electronics stated, "The entire search exercise is patently illegal, and any material collected thereunder should not be relied upon and must be returned. The CCI should be prohibited from using or relying upon the data and information.”

The company obtained an injunction from the court, which put the CCI proceedings on hold. However, the bench neither ruled on its request to return the seized data nor disallowed the Commission to rely on it.

Meanwhile, the CCI has challenged Samsung and 22 entities who won similar injunctions from the high courts across India. The competition regulator requested the Supreme Court to hear all challenges together, stating that the companies were trying to scuttle the investigation.

The investigation observed that Amazon and Flipkart breached competition laws by favoring select sellers on their platforms. But the companies have repeatedly denied wrongdoing, even as brick-and- mortar retailers complain about their deep discounting and other practices.

Samsung asserted that it was wrongly accused of breaching competition laws in collusion with Amazon and Flipkart, even though it cooperated and provided information as a third party.

The inclusion of smartphone makers in the Amazon and Flipkart investigation could increase legal and compliance difficulties for Samsung.

The CCI had that Samsung was involved in exclusive phone launches on Amazon and Flipkart, stating "exclusivity in business is anathema" and against free and fair competition.