South Indian Retailers to Seek Government Action Against POCO Over Alleged Unfair Practices

Indian retailers plan to seek government action against POCO's alleged unfair business tactics, claiming it reduces employment and government revenue. The outcome could reshape India's smartphone retail landscape.

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Dil Bar Irshad
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South Indian Retailers to Seek Government Action Against POCO Over Alleged Unfair Practices

South Indian Retailers to Seek Government Action Against POCO Over Alleged Unfair Practices

The South Indian Organised Retailers Association (ORA) plans to seek central government intervention against POCO, a Xiaomi sub-brand, in 2024. The ORA alleges that POCO is engaging in unfair business practices, such as reducing employment generation and causing financial losses to the government exchequer.

Specifically, the ORA claims that POCO is avoiding the supply of phones to mainline channels and instead reaching the product through online and 'illegitimate' channels without providing a proper consumer experience. The ORA believes that POCO's business methods are a clear indication of its attitude to reduce spending.

The retailers allege that POCO's business strategies, including exclusive partnerships and sales tactics, are unfairly affecting market competition and limiting the competitive abilities of other retailers. They are advocating for a thorough review by the Competition Commission of India (CCI) to ensure that POCO's market strategies align with legal and ethical standards.

Why this matters: The outcome of this issue could influence not only the business operations of POCO but also the broader dynamics of the smartphone market. The request for government intervention highlights the growing concerns among retailers about competitive practices in the tech industry.

The retailers argue that such scrutiny is necessary to maintain a healthy competitive environment in the Indian smartphone market. If the government takes up this investigation, it could lead to changes in how POCO engages with its partners and competitors, possibly reshaping the retail landscape for smartphones in India.

Key Takeaways

  • ORA plans to seek govt. intervention against POCO's alleged unfair business tactics in 2024.
  • ORA claims POCO avoids supplying phones to mainline channels, hurting retailers and govt. revenue.
  • Retailers allege POCO's exclusive partnerships and sales tactics limit market competition.
  • Outcome could influence POCO's operations and the broader Indian smartphone market dynamics.
  • Retailers seek CCI review to ensure POCO's strategies align with legal and ethical standards.