India’s three major quick-commerce (QC) companies—Blinkit, Swiggy Instamart, and Zepto—have prepared their responses for the Competition Commission of India (CCI), which is currently reviewing their operations to assess whether these companies are following anti-competitive practices, three people aware of the matter told Moneycontrol.
"We've drafted a response for the CCI", an executive of one quick-commerce company told Moneycontrol, adding that they would be submitting their inputs to CCI this week.
The CCI has not yet issued a formal notice, but has sought inputs from the three quick-commerce companies on their pricing strategies, preferential treatments to some sellers, and even allegations of possible foreign direct investment (FDI) norm violations, the sources said.
"FDI norms violation is not the domain of CCI, but of Department of Promotion of Industry and Internal Trade (DPIIT)…these companies, however, have been asked to respond to those allegations as well," one of three person said.
Moneycontrol had reached out to these three quick commerce companies—Blinkit, Swiggy Instamart, and Zepto--for an official comment, but didn’t receive any response.
In November 2024, the Confederation of All India Traders (CAIT) had accused the quick commerce companies of misusing FDI to dominate supply chains, control inventory, and fund predatory pricing tactics, creating an unfair environment for small retailers and pushing kirana stores out of business.
As per the current rule, 100 percent FDI is permitted in automatic rule for those quick commerce entities, where they act as a facilitator, providing a platform for buyers and sellers to connect. The company in this case does not own the inventory of goods being sold.
FDI, on the other hand, is prohibited for inventory-based model QC companies, where the entities own the goods and sells directly to consumers.
Further, the CCI has flagged deep discounting, and predatory pricing on these companies, which makes the products’ price fall below "net-landing price" (the price the customer finally pays). "They have highlighted that quick commerce companies fund losses through investor’s money, thereby violating anti-trust provisions," another source said.
Earlier this year, in March, All India Consumer Products Distributors Federation (AICPDF) had written to CCI alleging that these three companies engage in practices that could restrict competition in the quick commerce segment. Following which, the CCI sought inputs from them.
Based on responses from the quick commerce companies and other stakeholders, CCI will determine whether or not to launch a full anti-trust probe, sources said.
"The CCI’s call for additional details is a step in due diligence. Yet, the issue is significant. While deep discounting delights consumers in the short term, if it veers into predatory pricing it risks distorting markets and marginalising traditional trade. The true challenge lies in balancing innovation with fair competition," said Ketan Mukhija, Senior Partner, Burgeon Law.
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