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Zomato, Swiggy refute CCI probe claims of unfair practices

Both companies termed news reports on the Competition Commission of India's (CCI) investigation "misleading", maintaining that the CCI is yet to pass its final order on the matter of unfair business practices, including alleged preferential treatment to some restaurant partners by Zomato and Swiggy.

News Arena Network - New Delhi - UPDATED: November 11, 2024, 03:09 PM - 2 min read

Zomato CEO Deepinder Goyal and Swiggy Group CEO Sriharsha Majety.


Zomato and Swiggy, two major online food delivery platforms in India, have reiterated their commitment to legal compliance amid an ongoing probe by the Competition Commission of India (CCI) into alleged anti-competitive practices.

 

Zomato, in a regulatory filing, stated it is cooperating with the investigation and underscored that the CCI has yet to pass a final order.

 

 The company noted that the CCI's "prima facie" order dated April 4, 2022, prompted the Director General to look into potential violations under the Competition Act, 2002. 

 

"Since the intimation on April 5, 2022, no order has been issued on merits," Zomato said. It added that news reports on the investigation were "misleading" and reaffirmed its adherence to competition laws.

 

Swiggy, in its statement, said media coverage suggesting final outcomes from the CCI probe was inaccurate. "The inquiry report from March 2024 is part of an ongoing investigation and not a final decision," Swiggy noted, adding that it has not yet received detailed findings for response. 

 

The company said it would file its reply and attend hearings before any final ruling is made. "Swiggy is fully cooperating and remains committed to following Indian laws," it said.

 

The CCI launched a detailed investigation following an April 2022 complaint by the National Restaurant Association of India (NRAI).

 

 The watchdog had flagged concerns over potential conflicts of interest, such as preferential treatment for restaurant partners in which the platforms may hold an equity or revenue interest.

 

 This, it said, could create barriers for other restaurant partners to compete fairly.

 

The CCI also raised concerns over price parity clauses in Zomato and Swiggy’s agreements, which may restrict restaurants from offering lower prices or higher discounts on their own channels or through other aggregators.

 

 The Director General’s report, submitted earlier this year, has been shared with the companies, which will have the opportunity to respond before hearings commence and a final order is issued.

 

 

Related Tags:#Swiggy#zomato

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