The All India Consumer Products Distributors Federation (AICPDF) has filed a complaint with the Competition Commission of India (CCI), accusing quick commerce companies like Zomato’s Blinkit, Swiggy, and Zepto of engaging in predatory pricing. This practice is said to be affecting traditional retail distributors and putting the livelihoods of 400,000 small business owners at risk.
AICPDF’s Complaint on Predatory Pricing
The AICPDF, which represents retail distributors of major brands like Nestle and Hindustan Unilever, alleges that companies such as Blinkit, Swiggy, and Zepto are offering deep discounts and selling products below cost to attract customers. This form of predatory pricing, according to the AICPDF’s complaint dated October 18, unfairly hampers the ability of traditional retailers to compete.
By selling products at heavily reduced rates, quick commerce platforms are bypassing traditional distribution channels, forming direct partnerships with consumer goods companies. The AICPDF argues that this practice threatens the livelihood of small-scale retailers who depend on the traditional retail ecosystem for their survival.
Impact on Traditional Retail and Small Businesses
Quick commerce has reshaped how Indian consumers purchase everyday goods, promising deliveries within 10 minutes or less. While this has been convenient for consumers, it is putting immense pressure on the traditional retail sector. The AICPDF emphasizes that these discounting practices, combined with the swift delivery services of the quick commerce giants, are forcing small retailers to operate at unsustainable margins.
With 400,000 retail distributors affected, the complaint to the CCI highlights the long-term economic risks posed by such practices. If the situation persists, many small businesses could be forced out of the market, further consolidating power in the hands of a few large tech platforms.
Investigation by the CCI
The CCI is now investigating the AICPDF’s complaint. If the regulator finds evidence of anti-competitive practices, it may take legal action against the accused companies. This comes at a time when the quick commerce sector is booming, with Zomato’s shares doubling this year and Swiggy preparing for a significant IPO. However, the allegations of predatory pricing could impact the industry’s future growth trajectory.
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