Swiggy and Zomato have responded to recent media reports claiming that the two platforms are under investigation by the Competition Commission of India (CCI) for alleged antitrust issues, stating that these reports are misleading. Both companies have addressed the allegations as “misleading” and emphasised their commitment to fair competition and regulatory compliance.
The CCI’s probe started in 2022 following a complaint by the National Restaurant Association of India (NRAI). The NRAI had raised concerns over certain practices y the platforms it claimed could be detrimental to the restaurant industry.
Specifically, the association argued that Zomato and Swiggy might be exploiting their dominant positions to enforce ‘price parity’ across platforms and showing preference for certain restaurant listings, potentially creating an uneven playing field for other vendors.
This led to a ‘Prima Facie Order’ from the CCI, initiating an investigation under its Director General.
However, as The Economic Times reports, Zomato clarified in a statement issued to the Bombay Stock Exchange on Sunday that the investigation is still in the preliminary stages. Despite claims to the contrary in media reports, no conclusive findings or penalties have been issued, according to Zomato’s Company Secretary and Compliance Officer Sandhya Sethia.
“We will continue to work closely with the commission (CCI) to explain why all our practices are in compliance with the Competition Act and that they do not have any adverse effect on competition in India,” said the company.
Addressing the media reports, Sethia described them as ‘misleading,’ noting that while the CCI’s inquiry remains ongoing, the food delivery company has not received any orders indicating a breach of competition regulations.
Swiggy has also echoed a similar stance, calling the media reports about the CCI investigation ‘misleading.’ In its response, Swiggy clarified that the inquiry reflects a preliminary step, not a final ruling.
CCI’s main concern is that both platforms entered into ‘exclusivity contracts’ with certain restaurants, offering lower commission rates in return for exclusivity.
If CCI finds the platforms guilty, the companies can face fines or be forced to change their business models.
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