Synopsis
On March 7, FMCG distributors filed a complaint with the CCI against quick commerce platforms such as Blinkit, Swiggy, and Zepto, alleging anti-competitive behavior through predatory pricing and deep discounts. The CCI is yet to decide whether to investigate the claims.Key Takeaways
- FMCG distributors allege anti-competitive practices by quick commerce platforms.
- Predatory pricing strategies are claimed to disrupt the market.
- The complaint is a first formal approach to the CCI by the distributors' association.
- The CCI will decide on the petition in the next four weeks.
- Similar concerns were previously raised with government ministries.
New Delhi, March 7 (NationPress) A coalition representing FMCG distributors has submitted a petition to the Competition Commission of India (CCI) on Friday, accusing quick commerce platforms Blinkit, Swiggy, and Zepto of purportedly participating in anti-competitive practices.
As per reports, the distributors claim that these platforms are employing predatory pricing tactics, such as drastic discounting, to secure an unfair market edge.
The complaint was lodged by the All India Consumer Products Distributors Federation (AICPDF), which advocates for distributors of consumer products nationwide.
Nonetheless, the CCI has yet to accept the petition. Reports indicate that the competition watchdog will determine within the next four weeks whether to pursue an investigation or dismiss the case.
This represents the first instance of the distributors' association formally approaching the CCI regarding quick commerce firms. Previously, the industry body had expressed similar apprehensions to the Commerce and Finance Ministries.
The emergence of quick commerce platforms has revolutionized the retail sector by providing ultra-fast delivery of groceries and consumer goods.
However, traditional distributors contend that the aggressive discounting employed by these platforms is detrimental to their operations and disrupts the market.
In the meantime, late last year, the CCI urged the Supreme Court to consolidate all cases filed against e-commerce giants Amazon and Flipkart to expedite the ongoing antitrust investigation. The regulator asserts that multiple actions initiated by e-tailers in various high courts are hindering the probe.
Reports indicate that at least 20 online sellers linked to Amazon and Flipkart have submitted petitions across different courts.
The CCI has contended that these cases are an attempt to obstruct the investigation into alleged unfair business practices by the two e-commerce platforms.
The case traces back to 2019 when the CCI initiated an antitrust investigation against Amazon and Flipkart, focusing on claims that the platforms provided preferential treatment to select sellers.
The competition regulator informed the Supreme Court that permitting different courts to address the cases separately would result in confusion and unnecessary delays.
