CCI weighs probe against quick commerce firms

livemint.com:

Subscribe to enjoy similar stories. The Competition Commission of India (CCI) is considering if there are grounds to open an investigation into the grievances expressed by a trade body against quick commerce platforms Zepto, Blinkit and Instamart.

To open a probe it will need to see if it can take a first impression view on the matter, which could then form the grounds for an investigation, according to two persons privy to the development. The anti-trust watchdog has started internal deliberations on a letter written by the All India Consumer Products Distributors Federation (AICPDF) expressing concerns over alleged preferential treatment and listing of certain sellers on these platforms and their alleged deep discounting practices.

Taking a prima facie view is the first step towards deciding on ordering a probe. A view will be taken on this soon, after more detailed deliberations, said one of the persons quoted above, who spoke on condition of not being named.

Queries emailed on Tuesday to CCI, Zepto and Swiggy, which houses Instamart on its platform, seeking comments for the story remained unanswered at the time of publishing. Zomato, which owns Blinkit, said it is not able to offer any comment at this moment.

AICPDF National President Dhairyashil Patil told Mint that the body representing over 400,000 distributors and stockists across the country, has serious concerns about “the unchecked expansion of quick commerce platforms like Blinkit, Zepto, and Instamart." Patil said the federation’s formal letter to the CCI was in light of “the increasing disruptions these platforms are causing to traditional retail." The federation sought immediate investigation and regulatory action. “Our letter highlights critical issues