New Delhi20 minutes ago
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Competition Commission of India i.e. CCI has found food delivery platforms Zomato and Swiggy guilty of violating competition norms i.e. competition laws. According to reports, CCI has found in the investigation that Zomato and Swiggy have been found involved in unfair business practices.
CCI has also said that both the platforms were giving preferential i.e. special treatment to some restaurant partners. The Competition Commission had ordered a detailed investigation against both the companies in April 2022 and the investigation report was submitted to the regulator i.e. CCI earlier this year.
As per the rules, the CCI Director General's report has been shared with both the companies and they will be called for hearing by the commission later. CCI will pass after everyone's consideration and clarification.
NRAI had filed a complaint against Zomato-Swiggy
The decision to investigate Zomato and Swiggy was taken on a complaint filed by the National Restaurant Association (NRAI). According to media reports, investigation has found that both Zomato and Swiggy companies were involved in anti-competitive practices. Both the companies were giving special treatment to some restaurant partners. The report was submitted to the regulator earlier this year.
However, no statement has come out yet from Zomato and Swiggy on this matter. NRAI said it has reviewed the revised investigation report sent in March 2024. The association said in a statement, 'To protect the interests of the market, we recently filed a petition in the High Court in November 2024 requesting the CCI to provide us access to the complete report.'
Swiggy had told about CCI case in the RHP of IPO.
NRAI President Sagar Daryani has expressed hope that CCI will also expedite investigation in 2022 on other issues raised by NRAI in its petition. Last month, Swiggy had mentioned about the CCI case in the red herring prospectus for its Initial Public Offering i.e. IPO. Swiggy's IPO closed on 8th November i.e. Friday.
