The Federation seeks regulation of quick commerce players, as per the reports
Alleging anti-competitive practices against major players in the quick commerce ecosystem on the grounds of deep discounting, the All India Consumer Products Distributors Federation (AICPDF) has moved to the Competition Commission of India (CCI). As per the media reports, it has filed a petition, calling for their regulation.
The media reports stated that the distributors’ federation has raised concerns over the uncontrolled growth of quick commerce firms like Swiggy Instamart, Blinkit, BigBasket, Zepto. Highlighting that the consumers prefer these quick delivery apps due to their models of discounts, the reported cited sources stated that they are not against these companies, but they demand a co-existence with them so that the brick-and-mortar Kirana stores can function as well.
The petition has asked the commission to take note and regulate quick commerce companies over alleged price cutting. The reports added that citing the adverse impact on Kirana stores in the tier one cities, the petition has also demanded a minimum support price (MSP) on Maximum Retail Price (MRP).
As per the report, the demands include a 10 per cent price floor on MRP for fast-moving consumer goods (FMCG) products. The body demanded a two to three per cent floor on MRP for non-FMCG categories. It has also demanded control on ecommerce and quick commerce platforms’ offers and discounts through regulations.
Several retailers and distributors associations have raised concerns over the growth of these quick delivery firms on several occasions and have shed light on their impact on the traditional stores. Issues such as deep discounting, predatory pricing as well as quick delivery models have been brought to attention by these bodies.
