Zomato, Swiggy to Face India Antitrust Probe Into the Apps’ Neutrality

The NRAI alleged Zomato and Swiggy were misusing consumer data, charged exorbitant commissions, and provided massive discounting.

By Reuters | Updated: 5 April 2022 10:24 IST

Zomato, Swiggy to Face India Antitrust Probe Into the Apps’ Neutrality

Photo Credit: Reuters

The CCI will investigate whether Zomato and Swiggy are "neutral" platforms

Highlights

The Competition Commission of India is India's top antitrust agency
The NRAI had asked CCI to investigate Zomato and Swiggy
The NRAI represents more than 5 lakh restaurants across India

The Competition Commission of India (CCI) has ordered an investigation of food delivery companies Zomato and Swiggy over the companies' apps being "neutral" platforms, the antitrust watchdog said on Monday.

The order comes months after the National Restaurant Association of India (NRAI) asked the CCI to investigate the companies for breaching platform neutrality by providing priority to exclusive contractors.

"A conflict of interest situation has arisen in the present case, both with regard to Swiggy as well as Zomato ... which may come in the way of them acting as neutral platforms," the CCI said in an order.

Zomato Instant: CEO Deepinder Goyal Clarifies 10-Minute Delivery Plan

The NRAI, which represents more than 5 lakh restaurants across India, also alleged Zomato and Swiggy were misusing consumer data, charged exorbitant commissions, and provided massive discounting.

"The Commission observes that it has already found merit in investigating the issue pertaining to platform neutrality," the CCI said, but added that it did not see merits in allegations of delayed payments, "one-sided clauses" and "exorbitant commission etc" being linked to competition.

Swiggy and Zomato did not immediately respond to emails seeking comment.

Swiggy Raises $700 Million From Invesco, Other Investors

© Thomson Reuters 2022

Gaana CEO and Spotify's India chief join us on Orbital, the Gadgets 360 podcast, to discuss India's unique music streaming landscape. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.