DPIIT refers complaint against quick e-commerce players to CCI: Report

DPIIT, which comes under the commerce and industry ministry, has referred a complaint of alleged unfair business practices against quick commerce players to the Competition Commission, according to sources.

The complaint was submitted by the All India Consumer Products Distributors Federation (AICPDF) to the Union Commerce and Industry Ministry.

Quick commerce platforms are those that typically deliver goods within 10 to 30 minutes.

The Competition Commission of India (CCI), which works to ensure fair business practices across sectors in the marketplace, is already looking into alleged anti-competitive ways of e-commerce companies.

The sources in the know on Friday said the Department for Promotion of Industry and Internal Trade (DPIIT) has referred a complaint made against quick commerce players to CCI.

 

There was no immediate comment from CCI on the issue.

When contacted for comments on the complaint, AICPDF President Darshil Patil said he has come to know that the letter written by them to Commerce and Industry Minister Piyush Goyal has been forwarded by DPIIT to CCI.

In the letter, the federation has complained about alleged anti-competitive practices of quick commerce companies and has also sought an investigation.

The federation also plans to lodge a formal complaint with CCI against the quick commerce players for allegedly indulging in anti-competitive practices and seek a probe into their activities, Patil told PTI.

Once it receives a complaint of a reference from the government, CCI assesses the allegations in detail to take a prima-face view. If the regulator concludes that there is a prima facie violation of competition norms, then the matter is sent for a detailed probe.

AICPDF, which claims to represent around eight lakh entities, is concerned about the expansion of quick commerce platforms alleging that they are creating an uneven playing field and impacting small retailers.

Last month, the federation wrote to Goyal flagging concerns about the unchecked expansion of quick commerce platforms.

The rapid growth of quick commerce platforms like Blinkit, Zepto and Swiggy's Instamart is posing significant challenges to the traditional retail sector and the established Fast Moving Consumer Goods (FMCG) distribution network, the federation had said.

The quick commerce market in India is currently valued at approximately USD 5 billion.

In the quick commerce space, companies like Blinkit, Zepto, and Swiggy's Instamart have established a strong presence. Recently, ride-hailing player Ola, also announced its entry into this segment.

In their June quarter earnings, several FMCG companies reported high double-digit growth in quick-commerce from online sales.