UAE Legal NewsIndia’s fast-growing quick-commerce industry is facing fresh scrutiny as consumer product distributors have lodged an antitrust case against major players Zomato’s Blinkit, Swiggy’s Instamart, and Zepto. The complaint, filed with the Competition Commission of India (CCI), alleges that these platforms engage in deep discounting and predatory pricing, disrupting traditional retail networks.
The All India Consumer Products Distributors Federation (AICPDF), representing 400,000 distributors supplying brands like Nestlé, Unilever, and Tata, argues that small retailers cannot compete with the aggressive pricing strategies of these digital-first delivery services. The case follows a broader pattern of regulatory action in India’s e-commerce sector, where past investigations found global giants Amazon and Walmart-owned Flipkart engaging in similar practices.
Quick commerce, which promises deliveries in under 10 minutes, has transformed how Indians buy everyday essentials. But its rapid rise has also led to a shift in consumer behavior—recent surveys indicate a significant drop in foot traffic at supermarkets and local stores. The AICPDF’s filing highlights price disparities on popular products, showing that independent retailers often receive goods at higher wholesale prices than the discounted rates offered to consumers on Blinkit, Instamart, and Zepto.
If the CCI decides to proceed, the investigation could take months, potentially requiring companies to justify their pricing models. While Zepto is gearing up for an IPO after securing a $5 billion valuation, regulatory challenges could pose new hurdles for all three companies.
Despite the mounting pressure, India’s quick commerce market continues to expand. Industry estimates project its value to soar from $200 million in 2021 to $35 billion by 2030. As major players, including Mukesh Ambani’s Reliance, Amazon, and Flipkart, explore similar strategies, the battle between traditional retail and digital convenience is only heating up.
