In the letter, the federation has complained about alleged anti-competitive practices by fast-trading companies and has also requested an investigation. Representative image
The DPIIT, which is under the Ministry of Commerce and Industry, has referred a complaint about alleged unfair trade practices against fast-trade players to the Competition Commission, sources said.
The complaint was filed by the All India Consumer Products Distributors Federation (AICPDF) with the Union Ministry of Commerce and Industry.
Fast trading platforms are those that usually deliver goods within 10 to 30 minutes.
The Competition Commission of India (CCI), which works to ensure fair business practices across all market sectors, is already investigating alleged anti-competitive behavior by e-commerce companies.
Informed sources said on Friday that the Department for Promotion of Industry and Internal Trade (DPIIT) has forwarded a complaint filed against the flash trading players to the CCI.
There was no immediate comment from CCI on the matter.
When contacted for comments on the complaint, AICPDF chairman Darshil Patil said he has learnt that the letter written by them to Commerce and Industry Minister Piyush Goyal was forwarded by DPIIT to CCI.
In the letter, the federation has complained about alleged anti-competitive practices by fast-trading companies and has also requested an investigation.
The federation also plans to file a formal complaint with the CCI against the fast-trading players for allegedly indulging in anti-competitive practices and seek a probe into their activities, Patil told PTI.
Once it receives a complaint from a government referral, the CCI evaluates the allegations in detail to take a prima facie view. If the regulator concludes that there is a prima facie violation of competition rules, then the matter is sent for detailed investigation.
AICPDF, which claims to represent around 800,000 entities, is concerned about the expansion of fast-trading platforms, alleging that they are creating an uneven playing field and impacting small retailers.
Last month, the federation wrote to Goyal expressing concern over the uncontrolled expansion of fast-trading platforms.
The rapid growth of fast-commerce platforms such as Blinkit, Zepto and Swiggy’s Instamart is posing significant challenges to the traditional retail sector and the established distribution network of fast-moving consumer goods (FMCG), the federation said.
The e-commerce market in India is currently valued at approximately $5 billion.
In the fast-commerce space, companies like Blinkit, Zepto and Swiggy’s Instamart have established a strong presence. Recently, ride-hailing company Ola also announced its entry into this segment.
In their June quarter results, several FMCG companies reported high double-digit growth in fast-track trade from online sales.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: September 20, 2024 | 16:18 IS
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