Zomato’s Blinkit, Swiggy’s Instamart and Zepto face antitrust case over 'unfair pricing models'

Indian consumer products distributors have lodged an antitrust complaint against major quick-commerce players Zomato-owned BlinkIt, Swiggy’s Instamart and Zepto, alleging deep discounting practices that harm smaller retailers. The All India Consumer Products Distributors Federation (AICPDF) has filed a case with the Competition Commission of India (CCI), seeking an investigation into the pricing strategies of these platforms.

According to a report by Reuters, the AICPDF, representing 400,000 distributors who supply products to 13 million retail shops across India, alleges that the deep discounts offered by quick-commerce platforms create an unfair playing field.
“An alarming trend of predatory pricing and deep discounting practices by Q-commerce platforms resulted in unfair pricing models,” the group stated in its filing.
The complaint highlights the price discrepancies between online and offline channels, citing examples of products from major brands like Nestle and Hindustan Unilever being sold at significantly lower prices on quick-commerce platforms. For instance, a Nescafe coffee jar that costs a small retailer around Rs 622 rupees is offered for Rs 514 on Zepto, Rs 577 on Swiggy Instamart and Rs 625 on Blinkit.

This case may add to the regulatory challenges faced by Zomato and Swiggy, who are already under investigation by the CCI for alleged anti-competitive practices in their food delivery businesses. Zepto, which is reportedly preparing for an IPO after raising funds at a $5 billion valuation last year, could also face increased scrutiny.
The CCI will review the case filing and may order a detailed investigation. This process could take several months and involve companies providing explanations for their business practices.
This complaint comes amidst growing scrutiny of India’s e-commerce sector, with Amazon and Flipkart facing antitrust probes last year over alleged predatory pricing and preferential treatment of select sellers.