The Competition Commission requested a thorough investigation into food delivery websites Zomato and Swiggy for alleged unfair business practices in their dealings with restaurant partners. The order comes amidst the National Restaurant Association of India (NRAI) requested that the CCI probe the businesses for allegedly violating platform neutrality by giving exclusive contractors priority.
The Director-General (DG) of the watchdog will investigate the case and produce a report within 60 days. The regulator argued that "prima facie there exists a conflict of interest situation, warranting a detailed scrutiny into its impact on the overall competition between the RPs vis-à-vis the private brands/entities which the platforms may be incentivised to favour."
Allegations of a delayed payment cycle, one-sided conditions, and high fees, according to CCI, warrant further examination. According to the Competition Commission of India (CCI), both Zomato and Swiggy operate as major intermediary platforms in the food delivery arena, highlighting their market dominance and ability to adversely and appreciably alter the level playing field.
Complying with India's Competition Laws: Zomato
App for food delivery Zomato stated on Tuesday that it had been following India's competition regulations and that it would "work closely" with the Competition Commission of India. In a regulatory filing Zomato said, "We will continue to work closely with the Hon'ble Commission to assist them with their investigation and explain to the regulator why all of our practices are in compliance with competition laws and do not have any adverse effect on competition in India."
