CCI Ordered Investigation for Unfair Trade Practices of Zomato and Swiggy

swiggy zomato Law Insider

Khushi Gupta

Published on: April 7, 2022 at 15:16 IST

India’s Antitrust Regulator, The Competition Commission of India (CCI), ordered an Investigation into Allegations of unfair Trade Practices against food delivery aggregators Zomato and Swiggy.

The two are Alleged to have monopolized the Market and setting their own prices with the partner Companies.

Zomato and Swiggy together hold 90-95 per cent Market Share in India’s food delivery business. According to the National Restaurant Association of India (NRAI), which filed a Complaint with Competition Commission of India, Zomato is the dominant player in North Indian Markets and Swiggy in the South.

The Competition Commission of India has given its Director General to Investigate about these Allegations in 60 days.

“The Commission is of the view that there exists a Prima Facie Case with respect to some of the conduct of Zomato and Swiggy, which requires an Investigation by the Director-General to determine whether the conduct of the opposite parties have resulted in contravention of the Provisions of Section 3(1) of the Act read with Section 3(4) thereof,” the Order said.

Zomato, in a Statement explained to the regulator why all of their Practices are in compliance with Competition Laws and do not have any adverse effect on competition in India. “We intend to promptly comply with any recommendations given to us by the Hon’ble Commission,” the Company’s Statement said.

Bundl Technologies Private Ltd, the Parent Company of Swiggy, refused to comment on the Order.

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