Samsung Electronics and LG Electronics filed a lawsuit against the Indian government, which implemented a 'minimum pricing system for electronic waste disposal costs.' The Indian government raised the electronic waste collection and processing costs excessively, leading not only Samsung Electronics and LG Electronics but also foreign corporations to engage in legal action.
According to industry sources on the 22nd, Samsung Electronics argued that the regulation on disposal expenses is fundamentally unhelpful to the purpose of environmental protection and causes financial impacts, prompting them to sue the Indian government. LG Electronics emphasized in a petition submitted to the Delhi High Court on the 16th that merely imposing burdens on corporations under the pretext of the 'polluter pays principle' cannot achieve the goals.
In September of last year, the Indian government set a minimum price for waste disposal costs to increase the recycling rate of electronic waste. In India, companies that collect and process electronic waste charge manufacturers for the processing expenses.
Previously, these expenses were determined through negotiations between manufacturers and processing companies. The Indian government deemed that competition among recycling companies was leading to excessively low processing costs, resulting in decreased recycling rates, and set a minimum cost. Before the introduction of the minimum pricing system, the cost was usually traded at 6 rupees (about 100 won) per kilogram. Now, general electronic products are required to pay 22 rupees (about 366 won) per kilogram, and smartphones 34 rupees (about 566 won) per kilogram.
As the financial burden on local corporations increases, backlash is spreading. Joint ventures like Johnson Controls Hitachi, Japan's Daikin, and India's Havells, Tata Group, and Bluestar have filed lawsuits ahead of Samsung and LG. The Indian Electronic and Home Appliance Manufacturers Association sent a letter to the government in November of last year, requesting a review of the regulations, citing that the policy had increased total production costs by 2 to 8%.
According to Reuters, Samsung Electronics sent a letter to the Prime Minister's Office last year stating that waste processing costs increased by 5 to 15 times compared to previous levels. LG Electronics is also reported to have sent a letter to the Indian authorities urging that the rates set by the government are excessively high and that price determination should be left to the market.