Zomato, Swiggy, Zepto under fire as they face antitrust case over deep discounts

This case follows a similar antitrust investigation into Amazon and Flipkart, where the companies were accused of favouring specific sellers and engaging in predatory pricing tactics that disadvantaged smaller competitors

The All India Consumer Products Distributors Federation (AICPDF) has filed an antitrust complaint against quick commerce platforms such as Zomato, Swiggy, and Zepto, accusing them of engaging in predatory pricing and deep discounting practices. The complaint, lodged with the Competition Commission of India (CCI), comes as these platforms face growing scrutiny over their pricing strategies, which local distributors argue are harming small businesses.

AICPDF, which represents 400,000 distributors across India, contends that the aggressive discounting strategies of these quick commerce giants create unfair competition for local, brick-and-mortar stores. The group argues that smaller retailers are unable to match the discounted prices offered by platforms like Zepto, Swiggy Instamart, and Blinkit, ultimately undermining their profitability.

In its filing, the AICPDF compared the pricing of various products sold online and offline, including items from major brands such as Nestle and Hindustan Unilever. For instance, a Nescafe coffee jar, which costs around 622 rupees for independent retailers, is being offered at much lower prices — 514 rupees on Zepto, 577 rupees on Swiggy Instamart, and 625 rupees on Blinkit. The distributors claim that such discrepancies highlight the predatory nature of these platforms' pricing tactics.

Fairness in e-commerce questioned

The filing highlights an ongoing concern about the fairness of the e-commerce industry in India. In addition to this case, Zomato and Swiggy have been under investigation for similar issues with their food delivery services, which were found to have breached competition laws last year. This case, still in progress, adds to the broader debate about the impact of deep discounting on traditional retail businesses.

The AICPDF, which supplies products from major global brands like Tata, Nestle, and Unilever to millions of retail shops across the country, is seeking regulatory intervention to curb these pricing practices, which they argue distort the market and threaten the livelihood of small retailers.

This case follows a similar antitrust investigation into Amazon and Flipkart, where the companies were accused of favouring specific sellers and engaging in predatory pricing tactics that disadvantaged smaller competitors. Both companies denied these allegations. As the quick commerce sector grows rapidly in India, the outcome of this investigation could reshape the competitive landscape of the industry.

Also Read: Retail Distributors accuse Blinkit, Swiggy, Zepto of Predatory Pricing