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Samsung Challenges India’s Antitrust Probe, Citing Illegal Seizures

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Samsung Electronics has accused India’s Competition Commission (CCI) of unlawfully detaining its employees and seizing confidential data during a raid linked to an antitrust investigation involving Amazon and Flipkart, according to a legal filing. The case stems from a CCI probe that found Samsung and other smartphone companies colluded with the e-commerce giants to launch products exclusively online, breaching antitrust laws.

In an October 11 filing submitted to the High Court in Chandigarh, Samsung requested the quashing of CCI’s findings against it. The company argued that material seized during a 2022 raid at an Amazon vendor was obtained illegally. Samsung stated that three of its employees were detained during the raid, their phones confiscated, and confidential data copied without proper authority.

“The entire search exercise…is patently illegal, and any material collected thereunder should not be relied upon and should be promptly returned,” Samsung wrote in its 32-page petition. The filing also called for the CCI to be prohibited from using or relying on the unlawfully obtained data.

While Samsung secured an injunction from the High Court, temporarily halting the proceedings, the court has yet to decide on returning the seized data or barring the CCI from using it. The watchdog has faced similar injunctions from 22 other companies across India, prompting the CCI to seek a Supreme Court intervention to consolidate the challenges. The regulator claims the firms are attempting to derail its investigation.

The CCI probe centers on allegations that Amazon and Flipkart violated competition laws by favoring specific sellers on their platforms, disadvantaging competitors and brick-and-mortar retailers. Samsung, despite cooperating with the investigation as a third party, has been accused of enabling exclusivity in business practices by launching phones exclusively on Amazon and Flipkart. The watchdog labeled such practices as antithetical to free and fair competition.

Samsung, one of India’s leading smartphone makers with a 14% market share, denies any wrongdoing. The inclusion of smartphone manufacturers in the probe is expected to escalate legal and compliance risks for companies like Samsung.

The case underscores the growing tension between global tech firms and Indian regulators. Online sales have grown significantly in India, with 50% of phones sold online in 2022, compared to just 14.5% in 2013, according to Datum Intelligence. This shift has increased scrutiny on e-commerce platforms and their partnerships with tech firms.

 

Amazon Partners with Intuit to Bring QuickBooks to Third-Party Sellers

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Amazon is expanding its services for third-party sellers by partnering with Intuit to introduce its QuickBooks software, providing accounting tools to help sellers manage their finances. The collaboration, announced on Monday, will offer the software on Amazon Seller Central, the platform used by millions of sellers to manage their businesses on Amazon. This new integration is expected to launch in mid-2025.

With this move, Amazon aims to assist smaller sellers—especially mom-and-pop shops—with managing their finances more effectively. Sellers will have access to real-time insights into their financial health, including profitability, cash flow, and tax estimates. Additionally, sellers will have the opportunity to access loans through QuickBooks Capital to further support business growth.

Dharmesh Mehta, Amazon’s vice president of worldwide selling partner services, emphasized the importance of this collaboration, saying, “Together with Intuit, we’re working to equip our selling partners with additional financial tools and access to capital to help them scale efficiently.”

Although the integration won’t go live until next year, the announcement comes just as sellers are gearing up for the busy holiday shopping season. The partnership highlights Amazon’s continued focus on its marketplace, which accounts for about 60% of the products sold on its platform. The company generates substantial revenue from third-party sellers, both through fees for fulfillment, shipping services, customer support, and advertising.

Amazon’s seller services revenue grew by 10% in Q3, reaching $37.9 billion and contributing 24% of its total revenue. Amazon CEO Andy Jassy noted that third-party demand and unit volumes remain strong, reflecting the importance of the marketplace to Amazon’s overall business strategy.

Intuit, which is best known for its QuickBooks accounting software, has been expanding its offerings with AI-driven tools to help small businesses streamline their operations. QuickBooks has been a major growth driver for the company, and Intuit has recently added generative AI features to its suite of tools, including QuickBooks and Mailchimp, to provide more automated insights for small business owners. Intuit CEO Sasan Goodarzi noted that the goal is to create a seamless, “done-for-you” experience across its platforms to help sellers increase revenue and profitability while saving time.

 

Amazon India Eyes Quick Commerce with ‘Tez’; Launch Expected by December

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Amazon Prepares to Enter India’s Quick Commerce Market with ‘Tez’
Amazon India is reportedly making strides to launch its quick commerce service, codenamed ‘Tez,’ by the end of December 2024 or early 2025. The move marks Amazon’s expansion into the highly competitive instant delivery segment in India. This service is expected to cater to customers seeking ultra-fast deliveries of groceries and daily essentials, a market currently dominated by players like Blinkit, Swiggy Instamart, and Zepto.

According to sources cited by The Economic Times, Amazon is laying the groundwork for this ambitious project by setting up dark stores and optimizing its stock-keeping units (SKUs) to ensure a seamless supply chain. Dark stores, which function as small fulfillment centers, will play a key role in enabling rapid deliveries. By leveraging its robust logistics network, Amazon could bring significant competition to the quick commerce ecosystem in India.

The decision to launch ‘Tez’ sooner than originally planned demonstrates Amazon’s intent to capture a slice of the growing demand for hyperlocal deliveries. Initially focusing on essential items, the service may gradually expand its offerings. Amazon’s entry could disrupt the market dynamics, given its established infrastructure, customer base, and ability to scale quickly.

The quick commerce sector in India has witnessed rapid growth, fueled by urban consumers’ demand for convenience and time-saving solutions. If Amazon successfully integrates ‘Tez’ into its broader ecosystem, it could redefine customer expectations for speed and reliability in e-commerce. However, competition with seasoned players like Blinkit and Swiggy Instamart will require Amazon to offer unique value propositions to gain a foothold in this crowded space.