DPIIT seeks CCI probe into quick commerce platforms amid retailer complaints

DPIIT seeks probe: The Department for Promotion of Industry and Internal Trade (DPIIT) has sought an investigation by the Competition Commission of India (CCI) into quick commerce players like Blinkit and Zepto . The development comes amid a spate of complaints from local retailers against delivery services-turned-platforms, alleging anti-competitive practices.

Predatory Pricing in Crosshairs

Commerce Minister Piyush Goyal recently pointed out the social disruptions that e-commerce platforms have been causing, with predatory pricing being a focal point. Retailers said that though lower prices brought customers to the fore, they created an unsustainable market for smaller retailers that would eventually translate into higher prices once competition had diminished.

Exclusive Agreements and Market Dominance

The DPIIT, while reporting to the CCI, as per reports, places much focus on allegations against quick commerce companies for unfair marketing practices. The letter is indicative of such platforms entering into exclusive agreements with suppliers, which allows particular vendors a wiggle room over other competitors in the market.

E-Commerce Growth

India's e-commerce industry is well toward $325 billion in 2030, with around 881 million internet users triggering that growth. It is currently worth about $70 billion and constitutes about 7 percent of the country's retail markets, Invest India added.

Investigations against Key Players continue

That apart, the CCI's Director General of Investigation has discovered that the big e-commerce players, including Amazon and Flipkart, may have violated competition laws because they have been giving preferential treatment to some sellers and introducing exclusive products. Both the companies are in the dock, based on a report in Mint on September 12. The unfolding situation raises some questions of serious significance about the balance between consumer benefits and fair competition in the fast-charging e-commerce landscape of India.