INSUBCONTINENT EXCLUSIVE:
In the letter, the federation has complained about alleged anti-competitive practices of quick commerce companies and has also sought an
Representative Picture3 min read Last Updated : Sep 20 2024 | 4:18 PM IST
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
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.(Only the headline and picture of this report may have been reworked
by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)First Published: Sep 20 2024 | 4:18 PMIST
