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• Source: Global Times
• [23:24 June 17 2009]
• Comments

A Chinese man walks by an advertisement of NOKIA in Shanghai. Photo: AFP

By Tu Lei

The relationship between Nokia and its distributors in China was once seemingly as smooth as a quiet river. However, the waters have become rough as the Finnish phone giant’s retailers have been boycotting its products in protest over heavy fines Nokia levied on them for selling outside their assigned territories.

On Tuesday, more than 100 wholesalers in Hunan and Shandong provinces sent a letter written by a lawyer to Nokia, accusing the company of monopolizing prices to get windfall profits, reported the Beijing News.

The letter said Nokia’s policies, such as the heavy fines, not guaranteeing the quality of products sold outside the areas and dividing sales regions, are an effort to monopolize prices and the marketplace. The dealers say this may be a violation of Chinese law and added that they will sue Nokia if the world’s largest handset seller does not give them a “satisfactory response.”

On June 10, 40 dealers in the Communications Market in Jinan, Shandong Province, hung a red banner saying “Boycott Nokia” in front of the mall, the fifth largest cell phone wholesale and retail market in China. Some Nokia distributors in Shanghai have also shifted to other brands, reported Dongfang Daily. And dealers in Hangzhou, Zhejiang Province have also reportedly joined the protest, according to Changsha Evening News.

In response, Nokia said in a statement that it doesn’t have business relationships with the protesting distributors and Nokia will not negotiate with them.