Why the government is out for Xiaomi, Oppo, Vivo
In recent weeks, the $26 billion Indian smartphone industry has seen an unprecedented shakedown by the authorities. What does it mean?
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Editor's note: This summer has only been the bearer of bad news for the Chinese smartphone makers operating in India. In the weeks gone by, Xiaomi, Vivo and Oppo—which account for about 70% of the Indian smartphone market—have seen extraordinary scrutiny from the government, resulting in allegations of tax evasion and fraud. There have been raids, freezing of accounts, reshuffles in local leadership, rumours of executives fleeing the country and, in a first, accusations of coercion against the Indian government. If you haven’t been following the relentless news updates on the three companies, here are the highlights: Oppo: The offices and the executives of Oppo India have been seeing frequent raids. In December, it was from the income tax department. More recently, it has been the finance ministry’s revenue intelligence department that conducted searches at Oppo’s offices and the homes of its key executives in July. The department says it has found evidence of a customs duty evasion of Rs 4,389 crore; a show-cause notice has gone to Oppo. Vivo: Vivo India’s case is a big one. The Enforcement Directorate has alleged …
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