India’s quick commerce giants—Swiggy, Zomato-owned Blinkit, and Zepto—are under scrutiny as consumer product distributors have lodged a formal antitrust complaint against them. The companies are accused of offering deep discounts that allegedly harm smaller brick-and-mortar retailers, triggering an investigation that could have far-reaching implications for the country’s booming quick-commerce sector.
AICPDF vs Quick Commerce: What the Complaint Alleges
According to a Reuters report, the All India Consumer Products Distributors Federation (AICPDF)—which represents nearly four lakh distributors of FMCG (fast-moving consumer goods) companies and 13 million retailers across India—has formally requested authorities to probe the pricing strategies of quick commerce firms.
The core allegations in the complaint include:
- Predatory pricing: Quick commerce platforms are allegedly offering discounts that traditional retailers cannot match, squeezing smaller businesses out of the market.
- Market distortion: The deep discounting strategy allegedly creates an unfair competitive environment, making it difficult for small and medium-sized retailers to survive.
- Unregulated e-commerce practices: The AICPDF has raised concerns about FMCG brands using quick-commerce platforms to sell near-expiry and slow-moving stock, which they claim undermines traditional distribution channels and compromises consumer safety.
Regulatory Escalation: Commerce Ministry to Competition Commission of India
This isn’t the first time AICPDF has voiced concerns against quick-commerce platforms. The federation initially approached the Commerce Ministry in October last year, highlighting unfair business practices in the sector. The complaint was then forwarded to the Department for Promotion of Industry and Internal Trade (DPIIT), which later escalated the matter to the Competition Commission of India (CCI).
The CCI, India’s antitrust watchdog, has now taken up the case and will review the allegations. Depending on its findings, it can either:
- Order a full-scale investigation, which could lead to legal action and potential regulatory interventions.
- Dismiss the case if it finds no substantial evidence of anti-competitive behavior.
Given the complexity and potential market implications, this review process is expected to take several months.
Quick Commerce Under Fire: A Growing Industry Under Regulatory Lens
The AICPDF’s complaint is part of a larger pushback against the rapid expansion of quick commerce services in India. Platforms like Swiggy Instamart, Blinkit, and Zepto have revolutionized how groceries and essential goods are delivered within minutes, posing a direct challenge to traditional retailers and distributors.
Concerns Over Unfair Practices
- Traditional retailers argue that the aggressive discounting strategies of quick commerce companies distort pricing and disrupt local businesses.
- The deep discounts and cashback offers are allegedly unsustainable for small retailers, leading to unfair market dominance by a few large platforms.
- FMCG distributors fear that quick commerce platforms are altering long-established supply chains, forcing brands to prioritize online sales over physical stores.
Previous Investigations into Zomato and Swiggy
This antitrust complaint comes at a time when the CCI is already investigating Swiggy and Zomato over allegations of favoring select restaurants on their food delivery platforms. The regulator is examining whether these companies have violated competition laws by manipulating search rankings, commission structures, and delivery priorities.
If the CCI finds merit in the new case, the ongoing scrutiny on digital commerce platforms in India could intensify, leading to potential regulatory actions, stricter compliance rules, and changes in pricing policies.
What’s Next?
As the Competition Commission of India (CCI) reviews the allegations, the future of quick commerce pricing strategies remains uncertain. If the antitrust watchdog orders an investigation, Swiggy, Zomato, and Zepto could face significant regulatory hurdles, potentially forcing changes in their discounting policies.
This case also raises broader questions about how India’s regulatory framework will evolve to manage the rapid growth of quick commerce, balancing consumer benefits with fair competition for smaller businesses.
Bhupendra Singh Chundawat is a seasoned TECHNOLOGY journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.