Competition Commission of India seeks more details on Quick Commerce complaint

CCI is seeking additional evidence before investigating claims of anti-competitive practices against quick commerce companies, as traditional retailers allege unfair market practices.

By  Storyboard18Jan 2, 2025 7:59 AM
Competition Commission of India seeks more details on Quick Commerce complaint

The antitrust regulator is awaiting additional information before proceeding with an investigation into allegations of anti-competitive practices against quick commerce companies, highlighting the growing scrutiny of this rapidly expanding sector.

PTI reported that the Competition Commission of India has requested more detailed evidence from the All India Consumer Products Distributors Federation, which filed the initial complaint through the commerce ministry, according to Ravneet Kaur, the commission's chairperson.

"We have sent reminders requesting the necessary information as required under the Competition Act," Kaur said as per the report. The federation represents approximately 800,000 distributors across India.

The complaint comes amid mounting tension between traditional retailers and quick commerce platforms like Blinkit, Zepto, and Swiggy's Instamart, which promise deliveries in as little as 10 minutes. These digital newcomers have disrupted India's vast network of small retailers and distributors, who claim the platforms are creating an unfair marketplace through predatory pricing.

Darshil Patil, president of the distributors' federation, said the organization plans to submit a comprehensive complaint with supporting evidence within two weeks.

The quick commerce sector, valued at approximately $5 billion in India, has attracted significant investment and new entrants. Ola, the ride-hailing company, recently announced its foray into the space, intensifying competition in an already crowded market.

Traditional distributors and retailers, long the backbone of India's consumer goods market, are increasingly finding themselves at odds with venture capital-backed digital platforms that are reshaping consumer behavior and market dynamics. The outcome of this case could have significant implications for the future of quick commerce in India, potentially establishing new guidelines for how these platforms operate in one of the world's largest retail markets.

First Published on Jan 2, 2025 7:58 AM

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