Context:
The Parliamentary Standing Committee on Commerce, led by TMC MP Dola Sen, has asked the Competition Commission of India (CCI) to provide a detailed response on its regulatory actions to protect small retailers who reportedly make up 20% of India’s population amid rising concerns about unfair trade practices by dominant players in e-commerce and quick commerce sectors.
Key Focus Areas for CCI
- Safeguarding Small Retailers:
- Allegations of deep discounts, exclusive supply agreements, and market distortion by major quick commerce platforms such as Blinkit, Zepto, and Instamart.
- Emphasis on maintaining a level playing field to prevent marginalisation of small retailers.
- Digital Competition Law:
- Status update sought on the proposed Digital Competition Bill.
- Government is taking a cautious, consultative approach, studying best practices from the EU, Japan, and Australia to contextualize the law for India’s digital economy.
- Oversight of Quick Commerce Boom:
- Committee looking at regulatory frameworks to manage exponential growth in quick commerce.
- Panel considers retail-related implications crucial to the broader “Doing Business in India” reform effort.
- Recent Complaint & Investigations:
- The All India Consumer Products Distributors Federation filed a complaint in March 2025 alleging anti-competitive practices by quick commerce giants.
- Claims include predatory pricing and restrictive trade arrangements affecting competition in FMCG and grocery retail.
Legislative Context:
- Competition Amendment Act, 2023:
- CCI to brief the committee on implications of new provisions, including:
- Penalty calculation on global turnover
- Addressing hub-and-spoke cartel formations
- CCI to brief the committee on implications of new provisions, including:
- CCI’s Stance:
- In its FY2023–24 report, the antitrust body stated that it would intervene only when sector-specific analysis and policy implications justify such actions.
The standing committee’s proactive stance reflects increasing pressure on regulatory authorities to tackle market concentration and ensure inclusive growth in the digital economy. The outcome of this interaction with CCI could influence future competition law reforms, particularly in India’s booming online retail landscape.
