LG and Samsung Sue Indian Government Over E-Waste Pricing Policy

Image Source: Reuters

South Korean electronics giants LG and Samsung have filed lawsuits against the Indian government, challenging new regulations that significantly increase the minimum payments manufacturers must make to e-waste recyclers. This legal action adds to a growing wave of opposition from global electronics firms concerned about the financial and operational impact of India’s evolving environmental policies.

Key Highlights:

LG and Samsung are seeking to overturn a government policy that mandates a minimum payment of ₹22 per kilogram for recycling consumer electronics, a move intended to formalize the largely informal e-waste sector and attract more investment in scientific recycling.
The companies argue that the new pricing rules will nearly triple their recycling costs, shifting the financial burden onto manufacturers while benefiting recyclers, and potentially impacting product prices for consumers.
In detailed court filings, LG criticized the policy as “merely taxing companies under the guise of the ‘polluter pays principle’” and called for market-driven pricing, while Samsung warned that regulating prices would not inherently achieve environmental goals and would have significant financial repercussions.
India is the world’s third-largest generator of electronic waste, but only 43% of its e-waste was recycled last year, with over 80% handled by informal scrap dealers using unsafe methods.
Other major electronics companies—including Daikin, Havells, and Tata’s Voltas—have also filed lawsuits against the government, arguing that the new rules are unconstitutional, exceed regulatory authority, and create compliance challenges.
The lawsuits, set for hearing in the Delhi High Court, highlight a broader standoff between foreign manufacturers and Prime Minister Narendra Modi’s administration over the direction of India’s waste management reforms.

Source: Reuters, Economic Times, Yahoo Finance, The Hindu Business Line, StratNews Global, SCMP, The Study IAS