In a first, CCI probes allegations against quick-commerce companies

In a first, the Competition Commission of India (CCI) is conducting a preliminary inquiry into the allegations made by the All India Consumer Products Distributors Federation (AICPDF) against three quick commerce companies for allegedly indulging in anti-competitive practices, according to people in the know.

 

“The formal investigation by the director general investigations would be ordered based on the findings of the preliminary inquiry,” a person close to the development said. 

 

This would be the first time that the competition regulator is looking into the conduct of quick commerce companies.

 

The Federation had complained against Bundl Technologies, Blink Commerce and Zepto Marketplace for indulging in practices of deep discounts, exclusive supply and distribution agreements. 

 

AICPDF President Dhairyashil Patil filed the petition with the CCI, alleging that there were one crore mom-and-pop stores across the country and quick commerce was affecting their livelihood as well as operations of super stockists and stockists.

 

Sources said that the antitrust watchdog had asked the complainant for evidence of any discriminatory pricing being charged by any of the players from any consumer based on consumer location, device type or purchasing behaviour, and also evidence of any product being sold below cost price.

 

The CCI had asked the distributor's body for details on relevant market share of each of the quick commerce players in the FMCG industry. It had also sought clarity on whether the FMCG companies have any exclusive agreement for distribution.

 

Last year, AICPDF wrote to the Ministry of Finance over fund utilisation and fund accumulation by quick commerce companies and deep discounting of goods on their platforms.

 

In October last year, it had first written a letter to CCI over various issues the traditional supply chain is starting to face due to the rapid growth of quick commerce, which include the appointment of these platforms as direct distributors of FMCG items by several companies.

 

It had also written to The Food Safety & Standards Authority of India (FSSAI), post which the food sector governing body asked ecommerce and quick commerce food business operators (FBOs) to ensure a minimum shelf life of 30 per cent or 45 days before expiry of products at the time of delivery to consumers. 

The story so far 

• AICPDF alleged that Bundl Technologies, Blink Commerce, and Zepto Marketplace were indulging in anti-competitive practices
• Complaint stated that qcom was affecting livelihoods of mom-and-pop stores as well as operations of super stockists and stockists
• CCI had asked for evidence of any discriminatory pricing being charged by the players and also of any product being sold below cost price