Zomato-Swiggy accused of violating competition standards: according to the CCI, both companies are involved in unfair commercial practices

The Competition Commission of India i.e. CCI has found food delivery platforms Zomato and Swiggy guilty of violating competition norms i.e. competition laws. competition. Reportedly, CCI found during investigation that Zomato and Swiggy were involved in unfair trade practices.

CCI also said that both platforms provide preferential, i.e. special, treatment to certain partner restaurants. The Competition Commission had ordered a comprehensive investigation against the two companies in April 2022 and the investigation report was submitted to the regulator, namely the CCI, earlier this year.

In accordance with the regulations, the report of the director general of the CCI was shared with the two companies and they will then be summoned for hearing by the commission. CCI will be adopted after review and clarification of each.

NRAI had filed a complaint against Zomato-Swiggy

The decision to investigate Zomato and Swiggy was taken following a complaint filed by the National Restaurant Association (NRAI). According to media reports, an investigation revealed that Zomato and Swiggy were involved in anti-competitive practices. Both companies gave special treatment to certain partner restaurants. The report was submitted to the regulator earlier this year.

The Competition Commission had ordered an investigation against Zomato and Swiggy in April 2022.

However, no statement has been made by Zomato and Swiggy on this yet. NRAI said it has reviewed the revised survey report sent in March 2024. The association said in a statement: “To protect the interests of the market, we have recently filed an application in the High Court in November 2024 seeking the CCI to give us access to the full report.

Swiggy had spoken about the CCI deal as part of the RHP of the IPO.

NRAI Chairman Sagar Daryani expressed hope that the CCI will also expedite the investigation in 2022 into other issues raised by the NRAI in its petition. Last month, Swiggy had mentioned the CCI deal in the red herring prospectus for its IPO i.e. IPO. Swiggy’s IPO closed on November 8, i.e. Friday.