Xiaomi is evaluating reasons behind a 21.76 million yuan ($3.2 million) fine by an Italian commercial watchdog, the company told Jiemian News on Sunday, in response to reports saying that Xiaomi phones with scratches or minor defects were denied warranty.

“Xiaomi has always insisted on legal operation and complied with local laws and regulations,” it said, noting that the company is committed to providing every Italian user with the best after-sales service.

On July 8, the Italian Competition Authority released an announcement saying that it had fined Xiaomi Technology Italy 3.2 million euros, or approximately 21 million yuan, for obstructing the legal protection of consumers.

The authority added that the manufacturer of its smart phone refused to repair the product which is still covered under warranty, when it had scratches or other minor defects.

Xiaomi's global business, especially its overseas markets, has maintained strong growth in recent years. Public data showed that in 2021, Xiaomi's revenue from overseas markets reached 163.6 billion yuan, up 33.7 percent year-on-year, accounting for 49.8 percent of its total revenue, the Securities Times reported.

During 2022, the company has also repeatedly made it clear that Europe is an important market for Xiaomi, with its European market share reaching nearly 20 percent.

Global Times