CCI seeks evidence in complaint against quick-commerce companies

The Competition Commission of India (CCI) has sought additional information from the All India Consumer Products Distributors Federation (AICPDF) on its complaint against quick commerce companies, according to people in the know. The AICPDF had filed a complaint with CCI on behalf of its president, Dhairyashil Patil, against Blinkit, Zepto, and Instamart last month.

 

According to a source, CCI has asked the distributor’s body for details on relevant market share of each of the quick commerce players in the fast-moving consumer goods (FMCG) industry. It has also sought clarity on whether the FMCG companies have any exclusive agreement for distribution.

 

The CCI has asked the complainant for evidence of discriminatory pricing 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 antitrust watchdog has also asked for evidence to show that quick commerce players have tie-in-agreements which has resulted in them bundling products and selling the same as a package.

 

The complaint, seen by Business Standard, alleged that “quick commerce companies were indulging in practices of deep discounts and exclusive supply and distribution agreements, thereby engaging in unfair pricing and affecting the competition in the market for selling consumer goods.”

 

The CCI, once it receives a formal complaint, can order an investigation if it is satisfied with the information shared. It also has the option to seek comments from the parties named in a complaint or the party that has filed the complaint before ordering an investigation.

 

Last year, the AICPDF had written to the Union 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 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 includes the appointment of these platforms as direct distributors of FMCG items by several companies.

 

The federation had also written to the Food Safety and Standards Authority of India after which the food sector governing body asked ecommerce and quick- commerce food business operators to ensure a minimum shelf life of 30 per cent or 45 days before expiry of products at the time of delivery to consumers.