FMCG distributors file complaint against quick commerce platforms over discounts

According to reports, the distributors allege that these platforms are using predatory pricing strategies, including deep discounting, to gain an unfair advantage in the market.

The complaint was filed by the All India Consumer Products Distributors Federation (AICPDF), which represents distributors of consumer goods across the country.

However, CCI has not yet accepted the petition. Reports suggest that the competition regulator will decide within the next four weeks whether to investigate the matter or close the case.

This marks the first time that the distributors’ association has formally approached CCI against quick commerce companies. Previously, the industry body had raised similar concerns with the Commerce and Finance Ministries.

The rise of quick commerce platforms has transformed the retail sector by offering ultra-fast delivery of groceries and consumer goods.

However, traditional distributors argue that aggressive discounting by these platforms is hurting their business and disrupting the market.

Meanwhile, late last year, the CCI has urged the Supreme Court to merge all cases filed against e-commerce giants Amazon and Flipkart to speed up the ongoing antitrust investigation. The regulator claims that multiple cases filed by e-tailers in various high courts are delaying the probe.

According to reports, at least 20 online sellers associated with Amazon and Flipkart have filed petitions in different courts.

The CCI has argued that these cases are an attempt to block the investigation into alleged unfair business practices by the two e-commerce platforms.

The case dates back to 2019 when CCI launched an antitrust probe against Amazon and Flipkart. The investigation focused on claims that the platforms gave special treatment to select sellers.

The competition regulator told the Supreme Court that allowing different courts to handle the cases separately would lead to confusion and unnecessary delays. (IANS)

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