Samsung, along with LG, has taken legal action against the Indian government concerning a new “floor pricing” policy aimed at electronic waste recycling. The policy mandates a minimum payment of 22 rupees (approximately 25 cents) per kilogram for companies involved in recycling e-waste.
Samsung argues that this new requirement inflates costs substantially, estimating it to be 5 to 15 times higher than current rates. India’s motivation behind this policy is to enhance e-waste recycling rates, as a report indicates that only 43% of the country’s e-waste was recycled last year, with 80% of the sector dominated by informal scrap dealers.
The Indian government aims to address this issue with a fixed floor payment that encourages proper e-waste management. However, major firms like Samsung and LG contend that this approach may not effectively tackle the underlying problems of e-waste recycling and may disproportionately benefit recyclers rather than drive meaningful change.
Moreover, critics, including LG, accuse the government of “fleecing companies” and taxing them unfairly, stating that this method won’t help India achieve its e-waste management goals. The proposed pricing changes could lead to a tripling of recycling costs, which raises concerns among tech companies.
The topic of e-waste is significant globally, particularly in markets with substantial electronic consumption. The European Union, for instance, has already imposed regulations requiring manufacturers to ensure that all smartphone batteries are removable and replaceable by 2027, alongside ambitious recycling targets for battery waste.
As discussions about e-waste continue, it remains essential for consumers to participate in recycling efforts. It’s advisable for individuals to check with local retailers about recycling options for their old or damaged devices to contribute to responsible e-waste management.