Indian distributors file antitrust case against BlinkIt Swiggy Instamart and Zepto over unfair pricing models
The All India Consumer Products Distributors Federation (AICPDF) submitted an antitrust claim to the Competition Commission of India (CCI) targeting BlinkIt and the Instamart division of Swiggy alongside Zepto. The complaint presents evidence that shows how these quick-commerce services use forceful discounting tactics to damage smaller retailers. The Competition Commission of India will investigate the pricing procedures of these platforms following this complaint filed at CCI.
AICPDF Alleges Unfair Pricing Practices
AICPDF files a complaint that reveals how BlinkIt, Swiggy Instamart, and Zepto engage in heavy discounting, leading to market disunity. The federation protects distributors with 400,000 members who serve products to millions of Indian retailers. Based on the complaint, the platforms participate in “predatory pricing practices,” which harm small retail firms. The online prices operated by BlinkIt, together with Swiggy Instamart and Zepto create ongoing challenges to smaller shops because these prices remain substantially below traditional retail costs.
Major brands such as Nestle and Hindustan Unilever present their products at discounted prices through these online platforms. A Nescafe coffee jar costing Rs 622 at a small retail shop can be purchased at Zepto for Rs 514 and Swiggy Instamart for Rs 577. Price differences between online and offline markets are primary points within the AICPDF complaint since they induce unfair business competition and damage small store profitability.
Impact on Zomato, Swiggy, and Zepto’s Regulatory Scrutiny
The recent complaint further intensifies regulatory scrutiny of BlinkIt, Swiggy Instamart and Zepto operations. The platform faces further regulatory scrutiny since Zomato, which possesses BlinkIt and Swiggy, has faced CCI examination regarding their food delivery operations. A CCI investigation could lead to increased observation for BlinkIt and Swiggy Instamart.
As Zepto obtained substantial financial backing at a $5 billion valuation one year ago while preparing for an IPO, it will draw greater regulatory attention. During a detailed review process, the platforms must spend many months submitting their pricing structures to the competition watchdog for examination.
E-commerce Sector Under Increased Scrutiny
The complaint arises from the increasing doubts about unfair pricing across India’s e-commerce market. The Competition Commission of India investigates significant platforms with the same issues, including Amazon and Flipkart. Last year the platforms dealt with investigations about how they provided preferential treatment to selected sellers through their alleged predatory pricing practices.
A successful investigation of retail prices by the CCI will establish new standards that businesses in the quick-commerce industry must follow. The impending regulations might result in stricter guidelines for BlinkIt and Swiggy Instamart and Zepto to operate in India.
