The All India Consumer Products Distributors Federation (AICPDF), a retail group representing 400,000 retail distributors, has called upon the Competition Commission of India (CCI) to launch an antitrust investigation into three leading quick commerce companies — Zomato’s Blinkit, Swiggy and Zepto.
The companies allegedly engage in predatory pricing strategies that could undermine traditional retail distribution networks, as reported by Reuters, citing a letter dated 18 October 2024 from the AICPDF.
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The federation expressed concerns that quick commerce is disrupting the market by offering deep discounts and selling products below cost price to attract consumers.
This practice, they argue, is unsustainable for traditional retailers and distributors who have been servicing the market for decades.
The letter highlights how consumer goods companies are increasingly partnering directly with quick commerce platforms to expand their reach, potentially marginalising long-established sales channels.
“Implement protective measures for traditional distributors and small retailers to safeguard their interests,” states the AICPDF’s letter to the CCI.
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By GlobalDataZomato’s Blinkit, Zepto and Swiggy did not respond to Reuters’ queries.
The antitrust authority also did not respond to a query from the media, while the AICPDF declined to comment on its letter.
The CCI has the authority to initiate investigations independently if it deems complaints credible.
In August 2024, its investigative unit found that larger e-commerce entities such as Amazon and Flipkart were allegedly violating local laws through predatory pricing, a claim both companies refute.
Amidst these developments, Zomato’s stock value has seen significant growth this year, and Swiggy is preparing to launch an initial public offering worth more than $1bn.
In late September 2024, three online sellers operating on Walmart-owned Flipkart filed lawsuits against the CCI, challenging the antitrust investigation into the company and its rival Amazon.
