FMCG Distributors Drag Zomato, Swiggy, Zepto Before Competition Watchdog
A distributors' lobby alleged that quick delivery platforms were indulged in predatory practices, including deep discounting.
An FMCG distributors' body had filed a petition before Competition Commission of India, alleging anti-competitive practices by against quick commerce players Zomato-owned Blinkit, Swiggy and Zepto, according to people familiar with the matter.
Members of distributors' lobby All India Consumer Products Distributors Federation alleged the quick delivery platforms were indulged in predatory practices, including deep discounting, the people told NDTV Profit.
The news was first reported by Business Standard.
The petition has not accepted by CCI yet, other sources told NDTV Profit.
The competition regulator is likely to take a call on whether to order probe against the plea or close the case in next four weeks, the abovementioned sources added.
This is the first time the distributors' association is filing a formal case with CCI against quick commerce. Earlier, they had written to the competition watchdog regarding the same. "We will be filing a proper petition along with all evidence against the quick commerce entities before CCI in the next 10–15 days," AICPDF president Dhairyashil Patil had told PTI back then.
This petition follows a long list of AICPDF allegation against quick commerce players and the alleged threat they pose to traditional distribution networks.
The distributors' federation represents 4.5 lakh distributors and 1.3 crore kirana stores nationwide.
The body has been vocal about the challenges it faces from the fast-evolving quick commerce industry. In its earlier letter to the CCI in October, accusing quick commerce players Zomato Ltd.'s Blinkit, Swiggy Ltd.'s Instamart, and Zepto of predatory pricing. The government had followed this up by issuing notices to nine e-commerce and quick commerce companies, including Blinkit, Instamart, Zepto and JioMart.
Usually, CCI initially evaluates a complaint to determine if there are any apparent violations of competition laws. If violations are found, the matter is referred for a detailed investigation by its director general.
If accepted, this will be the latest in a line of high-profile antitrust probes involving online retailers. In December, the Supreme Court transferred all cases pertaining to the antitrust probe launched against e-commerce giants Amazon and Flipkart before the Karnataka High Court.
