Swiggy, Zomato and Zepto Face Antitrust Complaint Over Deep Discounts

Highlights

• Swiggy Instamart, Zepto and Zomato’s Blinkit face an antitrust complaint from AICPDF.
• The complaint alleges the deep discounting practices harm smaller brick-and-mortar retailers.
• The complaint was initially filed with the Commerce Ministry and now escalated to the Competition Commission of India (CCI).

India’s quick commerce giants Swiggy Instamart, Zepto and Zomato-owned Blinkit are facing an antitrust complaint from the All India Consumer Products Distributors Federation (AICPDF). The complaint alleges that these companies’ deep discounting practices are harming smaller brick-and-mortar retailers.

What’s The AICPDF Complaint About?

AICPDF, representing around four lakh FMCG distributors and 13 million retailers, has asked authorities to investigate how quick commerce companies are offering such heavy discounts. According to a recent Reuters report, the complaint specifies that smaller physical retail stores cannot compete with these low prices, putting their businesses at risk.

The complaint was first filed with the Commerce Ministry in October last year, later forwarded to the Department for Promotion of Industry and Internal Trade (DPIIT) and eventually escalated to the Competition Commission of India (CCI).

The CCI has now asked AICPDF to file a direct complaint, after which it will decide whether to launch an official investigation or dismiss the case. This process could take several months.

A separate Money Control report reveals that the complaint was first filed with the Commerce Ministry in October last year, later forwarded to the Department for Promotion of Industry and Internal Trade (DPIIT), and eventually escalated to the Competition Commission of India (CCI). The CCI has now asked AICPDF to file a direct complaint, after which it will decide whether to launch an official investigation or dismiss the case. This process could take several months.

This isn’t AICPDF’s first complaint against quick commerce companies. Earlier, it raised concerns with the Commerce Ministry about FMCG companies selling near-expiry and slow-moving products through online platforms. The organisation warned that this practice not only hurts small and medium-sized businesses but also poses a risk to consumer safety, reveals another Money Control report.

This case comes at a time when the CCI is already investigating Swiggy and Zomato for allegedly violating competition laws by favouring select restaurants on their platforms.

FAQs

Q1. Who filed the antitrust complaint against Swiggy Instamart, Zepto, and Zomato’s Blinkit?

Answer. The All India Consumer Products Distributors Federation (AICPDF) filed the antitrust complaint, alleging that these companies’ deep discounting practices are harming smaller brick-and-mortar retailers.

Q2. What is the main concern of the AICPDF’s complaint against quick commerce companies?

Answer. The complaint alleges that smaller physical retail stores cannot compete with the low prices offered by quick commerce companies, putting their businesses at risk.

Q3. What other investigations is the CCI conducting related to quick commerce companies?

Answer. The CCI is already investigating Swiggy and Zomato for allegedly violating competition laws by favoring select restaurants on their platforms.

Also Read: Swiggy to Launch Standalone Instamart App, Braces for Competition from Amazon and Flipkart; Restaurants Protest Against New 10-Min Delivery Apps

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