Samsung Accuses CCI Of Seizing Data Unlawfully

SUMMARY

The South Korean giant has claimed that the CCI officials seized the phones of its employees and copied confidential and privileged company data during a raid in 2022

Samsung has argued that the entire search exercise was patently illegal and any material collected thereunder should not be relied upon and should be promptly returned

Earlier this year, the CCI found Flipkart and Amazon guilty of flouting antitrust laws by favouring select sellers on their platforms

In a fresh twist to the ongoing antitrust probe into Amazon and Flipkart, electronics major Samsung has reportedly accused the Competition Commission of India (CCI) of detaining its employees during a 2022 raid carried out in connection with the investigation.

As per legal filings, dated October 11, accessed by Reuters, Samsung has alleged that the CCI officials detained three of its employees present in the vicinity of the search operation, which was conducted at one of Amazon’s vendors in 2022.

The South Korean giant has also claimed that the officials seized the phones of its workers and copied confidential and privileged company data.

“The entire search exercise undertaken … is patently illegal and any material collected thereunder should not be relied upon and should be promptly returned,” Samsung’s Indian arm has reportedly said in its filings in the High Court (HC) of Punjab and Haryana.

The company added that the CCI “should be prohibited from using or relying upon the data and information unlawfully collected”.

In its internal report, the CCI found Samsung guilty of indulging in the practice of exclusive phone launches on Amazon and Flipkart. The fair trade regulator said that “exclusivity in business is anathema” and against free and fair competition.

In its petition filed before the HC, Samsung has sought quashing of the findings of the investigation related to conduct of the company.

Samsung has also argued before the HC that it has been “wrongly” accused of breaching the competition laws in collusion with Amazon and Flipkart, even though it has been cooperating with the CCI and providing information only as a third-party in the case.

As per the report, Samsung has already obtained an injunction from the HC, which has put the CCI proceedings on hold. However, the court is yet to rule on Samsung’s requests to return the data seized and to not allow the commission to rely on it.

It is pertinent to note that the watchdog has challenged the petition filed by Samsung and 22 other parties, which have won similar injunctions from HCs across India. Earlier last week, the CCI approached the Supreme Court (SC) to club all the petitions, alleging that the companies were trying to scuttle the probe into Amazon and Flipkart.

At the heart of the matter is a CCI probe finding both Walmart-owned Flipkart and Amazon guilty of flouting antitrust laws by favouring select sellers on their platforms. While Amazon and Flipkart have denied any wrongdoing, trade bodies have time and again trained guns at the two marketplaces for using deep discounting tactics to woo customers.