Competition Commission of India: Competition Commission seeks more info from complainant on allegations against quick commerce companies

The Competition Commission, which has received a complaint of anti-competitive practices against quick commerce companies, is waiting for more information on the allegations from the complainant before taking a decision on the matter. The complaint was submitted by the All India Consumer Products Distributors Federation (AICPDF) to the commerce and industry ministry. Competition Commission of India (CCI) chairperson Ravneet Kaur said a complaint against quick commerce firms alleging that they indulged in predatory pricing and other anti-competitive practices was forwarded by Department for Promotion of Industry and Internal Trade (DPIIT) to the regulator.

“CCI has asked the informant to furnish details and information as per the requirements of the Competition Act. Reminders have also been sent to the informant to furnish the requisite information,” Kaur told PTI in a recent interview.

The watchdog first assesses a complaint to ascertain whether there are prima facie violations of the competition norms. In case, there are violations, the matter is referred for a detailed probe by its investigation arm Director General (DG).

In the case of the complaint against the quick commerce firms, CCI will gather requisite information and subsequently, the full commission will assess the complaint.

When asked, AICPDF president Darshil Patil said the association will file a proper formal complaint against the quick commerce players.

“We will be filing a proper petition (complaint) along with all evidence against the quick commerce entities before CCI in the next 10-15 days,” he told PTI. AICPDF, which claims to represent around eight lakh entities, is concerned about the expansion of quick commerce platforms alleging that they are creating an uneven playing field and impacting small retailers.

The rapid growth of quick commerce platforms like Blinkit, Zepto and Swiggy’s Instamart is posing significant challenges to the traditional retail sector and the established fast moving consumer goods (FMCG) distribution network, the federation had said in the complaint.

The quick commerce market in India is currently valued at approximately $5 billion.

In the quick commerce space, companies like Blinkit, Zepto, and Swiggy’s Instamart have established a strong presence. Recently, ride-hailing player Ola, also announced its entry into this segment.