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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.

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.

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.

© Thomson Reuters 2022


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