Nearly 300 phone distributors in China are due to protest against Nokia's alleged "illegal acts", according to the Beijing Morning Post. The dealers are claiming that Nokia monopolizes price, evades tax and infringes consumers' rights in China.
Distributor representatives have reportedly submitted three letters to the State Administration of Taxation (SAT), the State Administration For Industry and Commerce (SAIC) and the National Development and Reform Commission (NDRC) - China's top economic planning body.
One of the distributors said that if they couldn't get answers from Nokia, they would file a lawsuit, or even unite together to bar Nokia from selling mobile phones. "Distributors in our province have reached an agreement about that, and all of us have signed our names on it," he said.
Earlier this year, 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
Around the same time, some 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.
Nokia allocates defined markets to each distributor and fines the company if it tries to sell outside its permitted territory. The distributors contend that the fines are excessive and based on unrealistic sales targets that require them to sell to a wider area.
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