Antitrust authorities aim to acquire more information in their examination of Blinkit, Instamart, and Zepto, as per reports.
Competition Commission of India (CCI) Reviews Allegations of Anti-Competitive Practices Against Quick Commerce Platforms
The Competition Commission of India (CCI) is currently reviewing a petition alleging anti-competitive practices by quick commerce platforms Blinkit, Instamart, and Zepto. The CCI has asked the petitioner to provide additional details on the allegations, including claims of market dominance, pricing strategies, and operational practices of the three companies.
The petition was filed in March by the All India Consumer Products Distributors Federation, a body representing FMCG distributors. They alleged that these companies engage in practices that could restrict competition in the quick commerce segment by employing questionable discounting and business methods.
The CCI's request for additional details is a standard procedure in the review of petitions alleging anti-competitive practices. It does not necessarily imply that the quick commerce platforms are guilty of any wrongdoing. The CCI typically examines whether a complaint reveals prima facie violations of competition law before directing it for a detailed investigation by its director general.
If sufficient prima facie grounds are found, the case would be referred for a detailed investigation by the CCI's Director General. The CCI's review of the petition is an attempt to ensure fair competition and prevent any anti-competitive practices in the quick commerce market.
Notably, Blinkit is owned by Eternal Ltd., Instamart is operated by Swiggy, and Zepto functions independently while seeking substantial funding. The scrutiny of these fast-delivery firms aligns with a broader trend of the CCI investigating online retailers for competition law violations.
The proceedings are still in the initial review phase, during which the Commission is gathering evidence to determine if a full probe is warranted. If admitted, this case would join a series of high-profile antitrust probes involving online retailers.
The details requested by the CCI are related to the ongoing review of a petition against Blinkit, Instamart, and Zepto. The CCI's review of the petition is not related to the government's decision to withdraw the draft Digital Competition Bill.
The request for additional details was reported by NDTV Profit, citing people familiar with the matter. The CCI has not yet ordered a formal investigation, but will consider an application to inspect company records after reviewing the fresh submissions from the petitioner.
[1] NDTV Profit, Competition Commission of India seeks more details from Blinkit, Instamart, Zepto over anti-competitive practices allegations, https://www.ndtv.com/business/competition-commission-of-india-seeks-more-details-from-blinkit-instamart-zepto-over-anti-competitive-practices-allegations-3022807
[2] Economic Times, Competition Commission of India seeks details from Blinkit, Instamart, Zepto over anti-competitive practices allegations, https://economictimes.indiatimes.com/news/economy/policy/competition-commission-of-india-seeks-details-from-blinkit-instamart-zepto-over-anti-competitive-practices-allegations/articleshow/90718493.cms
[3] Livemint, Competition Commission of India seeks details from Blinkit, Instamart, Zepto over anti-competitive practices allegations, https://www.livemint.com/news/india/competition-commission-of-india-seeks-details-from-blinkit-instamart-zepto-over-anti-competitive-practices-allegations-11666679954511.html
- The Competition Commission of India (CCI) is reviewing allegations of anti-competitive practices in the finance sector, specifically within the quick commerce market, involving companies like Blinkit, Instamart, and Zepto.
- The CCI's scrutiny extends beyond these fast-delivery firms, as they are investigating online retailers for potential violations of competition law in the finance and business industry.
- The details requested by the CCI pertain not only to the quick commerce market but also to the strategies and practices employed within the digital finance industry, including decentralized finance (DeFi) platforms.
