zomato:  Swiggy, Zomato face probe for alleged anti-competitive practices - Times of India

zomato: Swiggy, Zomato face probe for alleged anti-competitive practices – Times of India

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NEW DELHI: The Competition Commission of India (CCI) has ordered an investigation into alleged anti-competitive trade practices by India’s largest food-ordering platforms, Zomato and Swiggy.
The antitrust watchdog’s order on Monday comes against the backdrop of complaints made by the National Restaurant Association of India (NRAI) against these food tech giants.
The 32-page order which TOI has reviewed, said, “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 (‘DG’)…”
Both Swiggy and Zomato refused to comment for this story but refuted most of the accusations.
The NRAI has alleged that apart from masking consumer data, Swiggy and Zomato prohibits individual restaurants from delivering orders on their own due to compulsory bundling of ordering and delivery services.
In addition, it alleged that the commissions charged by both platforms, which command a combined market share of around 95%, are unviable and are to the tune of 20% to 30%, which are exorbitant for individual restaurants.
Deep discounting, using their own cloud kitchens to churn out “private labels” and biased listing of preferred restaurants were other charges leveled at these two platforms.
Swiggy and Zomato argued that such bundling of ordering and delivery services is not anti-competitive and is done to control the end-to-end service of the order placed through their respective apps with the objective of enhancing consumer welfare.



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