INDIAN consumer products distributors have filed an antitrust case against big fast-delivery businesses of Zomato, Swiggy and Zepto, calling for an investigation into alleged deep discounting practices, legal papers show.
India’s e-commerce sector has faced intense scrutiny over how products are priced online. An antitrust investigation last year found Amazon and Walmart’s Flipkart favour select sellers and resorted to “predatory pricing”, which hurts smaller retailers. The companies have denied the allegations.
Quick commerce, in which companies deliver consumer products within 10 minutes from neighbourhood warehouses, is popular with customers but has upset smaller retailers as shoppers use apps to order everything from milk to pulses. Bernstein estimates India’s quick commerce sector will reach $35 billion in 2030, from $200 million in 2021.
The All India Consumer Products Distributors Federation (AICPDF), in a case filing with the Competition Commission of India, has asked for an investigation into many business practices of Zomato’s Blinkit, Swiggy’s instamart, and Zepto, including how discounts are doled out.
“An alarming trend of predatory pricing and deep discounting practices by Q-commerce platforms resulted in unfair pricing models,” said the group’s filing, which is not public but was reviewed by Reuters.
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