Zomato, Swiggy
The Competition Commission of India (CCI) investigation has found that food delivery apps Zomato and Swiggy are engaged in unfair business practices. Giving this information, sources said that these also include allegedly giving preferential treatment to some restaurant partners. CCI had ordered a detailed investigation in April, 2022. The investigation report was submitted to the regulator earlier this year. Under the rules, the CCI Director General’s report has been shared with the parties concerned and later, they will be called for hearing by the regulator. The regulator will pass the final order after collecting everyone’s views and explanations. The decision to investigate both the establishments was taken on a complaint filed by the National Restaurant Association of India (NRAI).
engaged in anti-competitive activities
Sources said the investigation found that both entities were engaged in anti-competitive activities, including allegedly giving preferential treatment to some restaurant partners. The report was submitted to the regulator earlier this year. Swiggy did not respond to an emailed query, while Zomato declined to comment. NRAI said it has reviewed the revised investigation report sent in March 2024. The Commission also found that these companies gave preference to restaurant partners with stakes and revenue interests over others. CCI said that such behavior can take place in a number of ways, which can affect competition.
Other investigations will also be expedited
NRAI President Sagar Daryani expressed hope that the CCI will also expedite the investigation in 2022 on other issues raised by NRAI in its petition. Last month, Swiggy had mentioned the CCI case in the preliminary documents filed for its initial public offering (IPO). The IPO closed on Friday.
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