Zomato, Swiggy To Undergo CCI Probe

The Competition Commission of India (CCI) has ordered an investigation into the operations and business models of food delivery platforms, Swiggy and Zomato. 

The antitrust body in an order dated 4 April, said that the commission is of the view that there exists a prima facie case concerning some of the conduct of Zomato and Swiggy, "which requires an investigation by the Director General (DG), to determine whether the conduct of platforms have resulted in contravention of the provisions " of the Competition Act, 2002.

The CCI has directed its DG to carry out a detailed probe and submit a report to it within 60 days.

The probe is in response to a complaint filed by the National Restaurant Association of India (NRAI), which represents over 50,000 restaurant operators across the country,  about alleged anti-competitive practices by Swiggy, Zomato. As per the association’s plea, the two food delivery companies command more than 90 percent market share in India. The NRAI has further alleged that these online food delivery platforms are indulged in deep discounting, exclusive tie-ups, and preferential treatments of restaurant partners in violation of the country’s competition rules, which has negative impacts on restaurants’ business as well as impedes the entry of new players into the market.

Reportedly, Zomato in its response to the NRAI’s plea has informed the CCI that it does not operate any price parity policy, Swiggy has said that its price parity clause only requires the restaurant partner to provide a competitive ‘list price’ of its products as offered on other platforms.