Samsung Sues CCI: Alleges Illegal Data Seizure, Seeks Ban on using its Data in Amazon & Flipkart Antitrust Investigation

Samsung Electronics has taken legal action against the Competition Commission of India (CCI), filing a complaint in the Punjab and Haryana High Court. The lawsuit challenges the legality of a 2022 raid conducted by the CCI as part of its antitrust investigation into alleged collusion between Samsung, Amazon, and Flipkart.

Samsung alleges that the search violated legal protocols leading to the unlawful detention of its employees and the unauthorized seizure of sensitive company data.

Details of the Raid

The Antitrust raid targeted Appario Retail, a famous Amazon reseller. During the operation, CCI officials allegedly detained three Samsung employees named Navneet Singh Nagi, Niket Shah, and Harbir Singh Chhabra and cloned data from their phones.

According to Samsung, the data includes highly sensitive information related to its pricing strategies, inventory details, and product launch plans.

Samsung’s Allegations

Samsung alleges that the CCI’s search operation was “patently illegal” claiming it violated the employees’ rights and the company’s confidentiality. In its court filing, Samsung has demanded:

1. The immediate return of all seized data.
2. A prohibition on using this data in the ongoing antitrust investigation involving Amazon and Flipkart.

Samsung also submitted that the seized data unfairly exposes its proprietary business practices and puts it at a disadvantage in the investigation.

Initially, Samsung was a third-party entity in the CCI’s probe. The probe is to determine if e-commerce platforms Amazon and Flipkart colluded with smartphone manufacturers for exclusive online product launches.

Samsung alleges that the raid and the seizure of its data have shifted its role, with the CCI now attempting to classify it as an “opposite party” in the case.

This reclassification could hugely impact Samsung’s legal exposure and heighten its involvement in the investigation which the company is actively trying to avoid.

Court Developments

The Punjab and Haryana High Court has issued an interim stay on the CCI’s probe into Samsung’s dealings providing temporary relief to the company. The CCI has taken this matter to the Supreme Court seeking to consolidate 24 similar petitions filed by other entities, including sellers on Amazon and Flipkart. The apex court’s decision could determine the fate of these related cases and potentially expedite the CCI’s broader antitrust investigation.

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