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Quick Commerce giants to respond to CCI over pricing, FDI violation allegations
Last year, the Confederation of All India Traders (CAIT) accused these quick commerce players of misusing FDI to dominate supply chains, control inventory, and fund predatory pricing strategies—claims that, according to CAIT, are harming small retailers and pushing local kirana stores out of business.
As per current FDI rules, 100% FDI is permitted under the automatic route for marketplace-based quick commerce platforms that act as facilitators connecting buyers and sellers. However, FDI is prohibited for inventory-led models where the platform owns and sells goods directly to consumers.
India’s top quick commerce firms—Blinkit, Swiggy Instamart, and Zepto—have prepared their responses for the Competition Commission of India (CCI), which is currently reviewing their operations to assess potential anti-competitive practices, according to a report by Moneycontrol.
While the CCI has not yet issued a formal notice, it has sought inputs from the three companies on their pricing strategies, alleged preferential treatment of certain sellers, and possible violations of foreign direct investment (FDI) norms, the report added.
Last year, the Confederation of All India Traders (CAIT) accused these quick commerce players of misusing FDI to dominate supply chains, control inventory, and fund predatory pricing strategies—claims that, according to CAIT, are harming small retailers and pushing local kirana stores out of business.
As per current FDI rules, 100% FDI is permitted under the automatic route for marketplace-based quick commerce platforms that act as facilitators connecting buyers and sellers. However, FDI is prohibited for inventory-led models where the platform owns and sells goods directly to consumers.
The CCI has also raised concerns about deep discounting and predatory pricing practices that allegedly bring product prices below the 'net landing price'—the actual cost paid by the consumer.
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