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The Competition Commission of India (CCI) on Monday, 4 April, ordered a probe into the conduct of food-tech giants Zomato and Swiggy for allegedly unfair trade practices.
The development comes after the National Restaurant Association of India (NRAI) alleged “anti-competitive” practices by the platforms.
It complained that Zomato used consumer data to build cloud kitchens and selectively offered perks to certain brands for additional fees, in turn guaranteeing minimum revenues to such brands, The Indian Express reported.
The competition watchdog has directed its investigative arm to submit a report within 60 days. The CCI said,
However, in a setback to the NRAI, the CCI stated that the restaurant body’s allegations of restaurant listings and food delivery services do not seemingly have a direct impact on competition.
The CCI further said that high commissions charged by platforms to restaurant partners prima facie “do not seem to have an effect on competition in the facts and circumstances of the present case,” as per The Indian Express.
It recommended that online platforms should be transparent with data sharing and reduce information asymmetry between sellers and the platforms.
(With inputs from The Indian Express.)
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