Indian Distributors File Antitrust Case Against Quick-Delivery Giants

India’s fast-growing quick commerce industry has come under fresh scrutiny as consumer product distributors have lodged an antitrust complaint against major players Zomato’s Blinkit, Swiggy’s Instamart, and Zepto. The complaint, filed with the Competition Commission of India (CCI), raises concerns over alleged predatory pricing and deep discounting practices, according to Reuters.

The All India Consumer Products Distributors Federation (AICPDF) has urged the CCI to investigate various business practices of these quick-commerce platforms, arguing that their pricing models create an unfair playing field. Per Reuters, the legal filing—though not publicly available—alleges that these platforms’ aggressive discounting strategies are harming smaller retailers.

India’s e-commerce sector has previously faced scrutiny over pricing practices. Last year, an antitrust probe found that Amazon and Walmart-owned Flipkart favored select sellers and engaged in predatory pricing. Both companies denied any wrongdoing. The new case against Blinkit, Instamart, and Zepto echoes similar concerns, particularly as quick commerce, which promises deliveries within minutes from neighborhood warehouses, continues to gain popularity. According to Bernstein, the sector is projected to grow to $35 billion by 2030, up from $200 million in 2021.

Source: Indian Retail Distributors Call for Antitrust Probe into Quick Commerce Firms

Zomato and Swiggy did not respond to Reuters’ requests for comment, while Zepto declined to provide a statement. The CCI has also not issued any response regarding the case filing.

The complaint could pose additional regulatory challenges for Zomato and Swiggy, both of which are already facing an ongoing CCI investigation into their food delivery businesses for alleged breaches of competition laws. Meanwhile, Zepto, which raised funds at a $5 billion valuation last year, is reportedly preparing for an initial public offering.

Per Reuters, the CCI will now review the complaint and decide whether to launch a formal investigation. If the case moves forward, the process could take several months and may require the companies to disclose details about their business practices.

Source: Reuters