DPIIT Refers Unfair Practices Complaint Against Quick Commerce to CCI

The Department for Promotion of Industry and Internal Trade (DPIIT) has referred a complaint by the All India Consumer Products Distributors Federation (AICPDF) about alleged anti-competitive practices in quick commerce to the Competition Commission of India (CCI). The federation is concerned about the impact on small retailers.

The Department for Promotion of Industry and Internal Trade (DPIIT), under the commerce and industry ministry, has referred an alleged instance of unfair business practices by quick commerce companies to the Competition Commission of India (CCI), according to sources.

The All India Consumer Products Distributors Federation (AICPDF) lodged the complaint with the Union Commerce and Industry Ministry, asserting that quick commerce platforms, which deliver goods within 10 to 30 minutes, are engaging in anti-competitive behavior.

The Competition Commission of India (CCI) is already investigating similar issues in the broader e-commerce market. AICPDF President Darshil Patil confirmed that their complaint had been forwarded to CCI by the DPIIT, demanding an investigation into the quick commerce sector.

The Federation claims that quick commerce companies are causing an uneven playing field for small retailers. The market, valued at approximately USD 5 billion, includes major players like Blinkit, Zepto, and Swiggy's Instamart, and now ride-hailing giant Ola has also entered the fray.

According to sources, once CCI receives a complaint from the government, it assesses the allegations to decide if a detailed probe is warranted. If a prima facie case is established, a comprehensive investigation will follow.

The rapid growth of quick commerce poses significant challenges to the traditional retail sector and the established Fast Moving Consumer Goods (FMCG) distribution network. Last month, the AICPDF wrote to Commerce Minister Piyush Goyal to raise concerns about the unchecked expansion of these platforms.

(With inputs from agencies.)