Blinkit And Zepto Face CCI Scrutiny After Local Retailers Raised Complaints

The Department for Promotion of Industry and Internal Trade (DPIIT) has requested the CCI to investigate quick-commerce platforms like Blinkit and Zepto, following complaints from local retailers, according to two sources.

This move comes after Commerce Minister Piyush Goyal recently raised concerns about the social impact of e-commerce platforms and the threat of predatory pricing, which can negatively affect small retailers. Predatory pricing involves lowering prices to capture market share, only to increase them later.

Local retailers have accused these quick-delivery platforms of engaging in anti-competitive practices, a concern flagged by the DPIIT for CCI examination, said one of the sources.

The DPIIT believes that while discounts are advantageous for consumers, they harm smaller businesses that struggle to compete on price, potentially leading to higher prices once competition is diminished, the source added.

Although the CCI does not set prices, it works to ensure fair competition in the market.

Meanwhile, the CCI’s Director General of Investigation recently reported that Amazon Seller Services and Flipkart Internet allegedly violated competition laws by favouring specific sellers, launching exclusive products, and offering deep discounts, leading to ongoing CCI proceedings against both companies.