Zomato and Swiggy for unfair trade practices.
ETtech reported in July 2020 about
NRAI seeking an intervention by the CCI to resolve what it alleged were “anti-competitive practices” followed by the two food-delivery firms.
Issues raised by NRAI against Zomato and Swiggy:
- Deep discounting and data masking
- Inflated commissions and price-parity agreements
- Vertical integration and lack of transparency
- Violation of platform neutrality by the restaurant aggregators
Following the probe ordered by CCI on Zomato and Swiggy, NRAI in its statement said, “It may be noted that the NRAI has been engaging with both the aggregators and the concerned government authorities in the past few years to resolve existing pain points of the industry vis-à-vis operations of the aggregators”
NRAI, which represents over 500,000 restaurants across the country, also added that the pain points were acutely amplified during the pandemic. However, it 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.
Though Swiggy and Zomato have previously denied the allegations in confidential as well as non-confidential submissions to the CCI, it is not the first time that these companies are under scrutiny.
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