Competition Commission of India on Monday ordered an investigation to determine whether Zomato and Swiggy have violated the competition laws in India
A day after Competition Commission of India (CCI) ordered a probe into the conduct of Zomato, the company said it will work closely with the commission and assist in its investigation.
“We will continue to work closely with the Commission to assist them with their investigation and explain to the regulator why all of our 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 publicly listed company said in a statement on Tuesday.
The CCI on Monday ordered an investigation to determine whether online food aggregators Zomato and Swiggy have violated the competition laws. The Director General of the Commission will carry out a detailed investigation and submit a report within 60 days.
“Preferential treatment accorded to the restaurant partners in which these platforms have an equity or revenue interest can create barriers for the existing RPs (restaurant partners) to compete on fair terms. Such preferential treatment can be through various ways given the platform’s control over different aspects that influence competition on them, including control over deliveries, search ranking, etc. which can only be examined appropriately in an investigation,” the CCI order noted.
The probe was ordered in response to National Restaurant Association of India’s (NRAI’s) allegations of delayed payment cycle, imposition of one-sided clauses in the agreement, charging of exorbitant commission, etc. On the CCI probe, NRAI said that it is extremely happy with the order and looks forward to a “positive outcome of this investigation which will pave the way towards providing a level playing field for all stakeholders in the ecosystem.”
Published on
April 05, 2022
