Zomato's Blinkit, Swiggy's Instamart, and Zepto are facing an antitrust complaint filed by the All India Consumer Products Distributors Federation (AICPDF) with the Competition Commission of India (CCI).
The complaint alleges that these quick-commerce platforms engage in predatory pricing and deep discounting, creating an unfair market environment for traditional retailers. This development adds to the regulatory challenges faced by these companies, which are already under scrutiny for their business practices in the food delivery sector.
The allegations against these platforms are significant, with claims that they offer products at prices that are substantially lower than those available to traditional retailers. For instance, a Nescafe coffee jar that costs small retailers Rs 622 is sold for Rs 514 on Zepto and Rs 577 on Swiggy Instamart. This pricing strategy is seen as predatory, as it makes it difficult for traditional retailers to compete, affecting over 13 million retail stores across India.
The CCI will review the case and may order a detailed investigation. This process could take several months and involve companies providing explanations for their business practices. The outcome of this case could have far-reaching implications for India's quick-commerce market, which is projected to reach $35 billion by 2030. However, this growth comes at the cost of traditional retailers, who see reduced sales due to the convenience of quick-commerce platforms.
