By Asmita - Mar 07, 2025
A complaint has been filed by the AICPDF against quick-commerce platforms Zomato's Blinkit, Swiggy's Instamart, and Zepto in India for alleged deep discounting practices. The complaint focuses on how these practices harm smaller retailers and disrupt fair competition, with concerns raised about predatory pricing creating an uneven playing field. This case adds to broader regulatory challenges in India's e-commerce sector, with the CCI now set to investigate the pricing strategies of these platforms, potentially leading to penalties or changes in business practices.
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The All India Consumer Products Distributors Federation (AICPDF) has filed an antitrust complaint against major quick-commerce players in India, specifically targeting Zomato's Blinkit, Swiggy's Instamart, and Zepto. This complaint, submitted to the Competition Commission of India (CCI), alleges that these companies engage in deep discounting practices that undermine smaller retailers and disrupt fair competition in the market. The AICPDF represents a significant number of distributors, totaling around 400,000 members who supply products to approximately 13 million retail outlets across the country. The federation's concerns stem from the belief that the aggressive discounting strategies employed by these platforms create an uneven playing field, making it challenging for traditional retailers to compete effectively.
The complaint highlights a troubling trend of what AICPDF describes as "predatory pricing," where quick-commerce platforms offer products at prices significantly lower than those available through conventional retail channels. For instance, a Nescafe coffee jar that costs a small retailer around ₹622 is sold for ₹514 on Zepto, ₹577 on Swiggy Instamart, and ₹625 on Blinkit. Such discrepancies not only affect the profitability of small retailers but also threaten their survival in an increasingly competitive landscape dominated by technology-driven delivery services. The filing indicates that this issue has persisted over time, as AICPDF previously sought investigations into similar practices last year.
The scrutiny surrounding these quick-commerce companies comes amid broader regulatory challenges faced by the e-commerce sector in India. Previous investigations into giants like Amazon and Flipkart revealed violations of competition laws related to preferential treatment of select sellers. Similarly, Zomato and Swiggy have been under investigation for allegedly favoring certain restaurants on their platforms. The current case against Zomato, Swiggy, and Zepto adds another layer to the ongoing discourse about fair competition in India's rapidly evolving digital economy. As consumer preferences shift towards convenience and speed, these quick-commerce firms have gained significant traction, raising concerns among traditional retailers about their long-term viability.
The CCI will now assess the AICPDF's complaint and may initiate a detailed investigation into the pricing practices of these quick-commerce platforms. This process could take several months and involve comprehensive scrutiny of business operations and pricing strategies. If the CCI finds merit in the allegations, it could impose penalties or mandate changes in business practices to ensure compliance with competition laws. The outcome of this case is particularly significant for Zomato and Swiggy, both of which are already navigating regulatory challenges related to their food delivery services. For Zepto, which is preparing for an initial public offering (IPO) after achieving a valuation of $5 billion last year, increased scrutiny could impact its growth trajectory and investor confidence.