ED Probes Amazon, Flipkart; Seeks Online Sales Data from Apple, Xiaomi

India’s Enforcement Directorate (ED) has initiated a fresh probe into alleged violations by e-commerce giants Amazon and Walmart-owned Flipkart, requesting online sales data and contractual details from smartphone companies including Apple and Xiaomi. Sources familiar with the matter revealed that the investigation, which centers around compliance with Indian foreign investment regulations, is aimed at understanding the dealings between smartphone makers and e-retail platforms. Apple reportedly received a directive from the ED in March, while Xiaomi declined to comment.

The ED suspects the two e-commerce platforms of breaching Indian laws that prohibit foreign players from controlling inventory or engaging in direct sales—an issue that has drawn ongoing criticism from small traders impacted by deep online discounts and exclusive product launches. A senior government official clarified that smartphone firms have been approached only for information, and are unlikely to face charges themselves, though penalties could follow if wrongdoing by the platforms is established.

This development comes as India and the U.S. inch closer to a trade deal, where e-commerce regulations remain a point of discussion. A separate antitrust probe last year concluded Amazon and Flipkart gave preferential treatment to select sellers and collaborated with smartphone brands like Xiaomi and Samsung to exclusively launch products online. As India’s e-retail market is projected to surpass $160 billion by 2028, scrutiny on these practices is intensifying.

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