CCI to probe Zomato, Swiggy for alleged unfair biz practices

New Delhi, April 4

Competition Commission on Monday ordered a detailed probe against food delivery platforms, Zomato and Swiggy, for alleged unfair business practices with respect to their dealings with restaurant partners.

The order has come on a complaint filed by the National Restaurant Association of India (NRAI). The watchdog’s probe arm — Director General (DG) — will investigate the case.

The regulator said that “prima facie there exists a conflict of interest situation, warranting a detailed scrutiny into its impact on the overall competition between the Restaurant Partners (RPs) vis-à-vis the private brands/entities which the platforms may be incentivised to favour”.

Both Zomato and Swiggy operate as major intermediary platforms in the food delivery space, underscoring their market power and ability to adversely and appreciably affect the level-playing field, the Competition Commission of India (CCI) said.

It also noted that preferential treatment accorded to the Restaurant Partners (RPs) in which these platforms have an equity or revenue interest can create barriers for the existing RPs to compete on fair terms. — PTI

Conflict of interest

Prima facie there exists a conflict of interest situation, warranting a detailed scrutiny into its impact on the overall competition. — Competition Commission of India