India’s Enforcement Directorate (ED), the agency responsible for investigating financial crimes, has secretly requested that phone companies such as Apple and Xiaomi provide sales figures and accompanying documents. It is all part of a larger investigation into online retailers Amazon and Flipkart.
The probe is centered on whether these firms have breached Indian laws that prohibit foreign e-commerce websites from directly stocking and selling goods. These sites can only function as marketplaces between buyers and sellers.
Indian small retailers have long complained that Amazon and Flipkart’s business practices — deep discounts and indirect manipulation of inventories — harmed their businesses. But both firms claim they comply with all local regulations.
In the last few weeks, the ED has written to phone manufacturers requesting information about their sales on the internet, particularly their business connections and agreements with Amazon and Flipkart. Apple was said to have received the notice in March.
None of the big companies — Apple, Amazon, Flipkart, or Xiaomi — have replied to the question officially. The ED has remained quiet too.
This follows while India and the U.S. negotiate a possible trade agreement, where regulation of e-commerce in India is one of the major discussion points.
