Under the policy, manufacturers must pay a mandated minimum amount to certified recycling firms for the collection and processing of discarded electronics. (Image courtesy of Pixabay)
SEOUL, April 21 (Korea Bizwire) — Samsung Electronics and LG Electronics have filed lawsuits against the Indian government, challenging its newly implemented minimum pricing rules for e-waste recycling, according to a Reuters report published April 21.
The legal action stems from India’s introduction in September 2024 of a regulatory framework that sets minimum disposal fees for electronic waste in a bid to improve recycling rates. Under the policy, manufacturers must pay a mandated minimum amount to certified recycling firms for the collection and processing of discarded electronics.
Previously, disposal costs were negotiated freely between manufacturers and recyclers. But Indian regulators argued that intense price competition among recyclers had driven fees too low, undermining recycling efforts. As a result, the government imposed fixed minimum rates — 22 rupees (approximately 366 won) per kilogram for general electronics and 34 rupees (about 566 won) for smartphones, compared to the earlier average of 6 rupees (roughly 100 won).
In its filing, Samsung contended that the mandated fees do not meaningfully advance environmental objectives and pose a significant financial burden on manufacturers. LG, which submitted its suit to the Delhi High Court on April 16, argued that the principle of “polluter pays” cannot be fulfilled solely by transferring costs to businesses.
India is the world’s third-largest generator of e-waste after China and the United States, but only 43% of its electronic waste is currently recycled. The government’s policy has sparked backlash from global electronics makers, many of whom have already pursued legal remedies.
Before Samsung and LG, other major companies — including Johnson Controls-Hitachi, Japan’s Daikin, and India’s Havells, Tata Group, and Blue Star — filed similar lawsuits.
The Consumer Electronics and Appliances Manufacturers Association (CEAMA) of India also sent a letter to the government in November 2024, warning that the new pricing regime could increase production costs by 2% to 8% across the sector.
According to Reuters, Samsung sent a letter to the Prime Minister’s Office last year claiming that the new disposal charges were five to fifteen times higher than previous rates. LG also submitted a separate letter calling for a rollback of the policy, stating that the government-mandated rates were unreasonably high and should instead be determined by market dynamics.
As the cases proceed through the Indian legal system in 2025, the outcome could shape how emerging markets balance environmental policy with the economic concerns of global manufacturers.
Kevin Lee (kevinlee@koreabizwire.com)
