CCI Seeks Evidence in Predatory Pricing Probe Against Quick Commerce Players
The Competition Commission of India (CCI) has moved to the next stage in its probe into quick commerce platforms such as Zepto, Blinkit, Swiggy Instamart, and BigBasket’s BB Now, following allegations of predatory pricing practices raised by the All India Consumer Products Distributors Federation (AICPDF).
After an initial review, the CCI has requested the AICPDF to furnish additional evidence substantiating the claim that deep discounts offered by quick commerce platforms are disrupting market competition and adversely affecting traditional fast-moving consumer goods (FMCG) distributors.
The heart of the allegation lies in the pricing strategies of these quick delivery players, with the AICPDF asserting that offers of 25% to 70% discounts on groceries and branded FMCG products cannot be matched by offline distributors, especially when offline trade operates on significantly thinner margins of around 5–15%. The Federation contends this is creating an uneven playing field in the Rs 50,000 crore quick commerce sector, which is projected to grow significantly as consumer preference continues to tilt toward convenience-led purchasing.
The CCI’s move to seek corroborating material indicates preliminary interest in assessing whether market practices fall under abuse of dominant position or anti-competitive behavior, as defined under India’s competition laws. While no formal case has been initiated yet, the regulator’s signal reflects growing scrutiny into business models that leverage investor funds to scale aggressively and discount heavily.
Market analysts point to the structural differences between quick commerce and traditional distribution as a key factor. While offline distributors rely on volume-driven but margin-light supply chains, quick commerce platforms are backed by private equity and venture capital funding. This financial backing allows them to absorb losses in pursuit of rapid customer acquisition and market share consolidation—tactics that have drawn criticism from offline trade associations for allegedly driving destabilized pricing ecosystems across FMCG categories.
Industry stakeholders will be closely monitoring how the case unfolds, as the outcome could redefine pricing boundaries and competitive norms in India’s evolving FMCG distribution landscape. Should the CCI proceed with a formal investigation, it may impact discounting practices and reshape operational strategies, particularly for quick commerce players expanding aggressively into neighborhoods traditionally served by mom-and-pop stores and conventional distributors.