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Photo = Yonhap news |
[Alpha Biz= Paul Lee] Seoul, South Korea – April 22, 2025 – Samsung Electronics and LG Electronics have filed lawsuits against the Indian government, challenging its recent implementation of a minimum pricing policy for electronic waste (e-waste) recycling costs. The companies argue that the policy imposes an excessive financial burden on foreign manufacturers operating in India.
According to Reuters and industry sources, the lawsuits were filed in response to a regulation enacted by the Indian government in September 2024, which mandates a minimum fee that manufacturers must pay to waste collection agencies for processing e-waste.
Previously, the cost of e-waste collection and recycling was determined through mutual agreement between manufacturers and collection agencies. However, the Indian government introduced fixed minimum pricing, citing concerns that low fees were contributing to poor e-waste recycling rates.
Under the new regulation, the collection fee per kilogram has surged from 6 rupees (approximately KRW 100) to 22 rupees for general electronic products and 34 rupees for smartphones—representing a three- to sixfold increase.
In a 345-page filing submitted to the court, Samsung argued that "the price regulation is fundamentally misaligned with environmental protection goals" and would result in "significant financial consequences." Samsung also reportedly sent a letter to Indian Prime Minister Narendra Modi’s office, stating that the cost of e-waste management had increased by five to fifteen times since the policy was introduced.
LG Electronics similarly challenged the policy in a filing to the Delhi High Court, stating that “imposing levies under the guise of the 'polluter pays principle' will not help the government achieve its intended objectives.” LG further emphasized in its communication with Indian authorities that market-based pricing mechanisms should be respected.
Samsung and LG are not alone in contesting the new regulation. Other multinational corporations, including Johnson Controls-Hitachi (a U.S.-Japan joint venture), Daikin (Japan), and Indian firms such as Havells, Tata Group, and Blue Star, have also filed lawsuits against the Indian government.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
