The Competition Commission of India (CCI) has ordered a probe into food delivery apps Zomato and Swiggy for unfair pricing practices as well as other issues reported by NRAI in a complaint to the regulator.
The National Restaurants Association of India (NRAI), had complained CCI in July 2021 regarding anti-competitive practices by the food delivery platforms. It had complained that Swiggy and Zomato were indulging in deep discounting, data masking, exorbitant commissions, and imposing price parity terms on restaurant partners.
NRAI had also claimed that operating parties often induce restaurant partners to commit exclusively to the respective platform. In response, the CCI said it would also look at the issue of ‘platform neutrality’ against the food-tech companies.
“It may also be seen during investigation whether exclusivity in conjunction with minimum guarantee obligation is further accentuating the structure which may come in the way of the platform operating in a neutral manner,” CCI said.
CCI will also investigate NRAI’s allegations around ‘price parity’ arrangements followed by Zomato and Swiggy. The competition regulator noted that restaurant partners were not being allowed to maintain lower prices on the aggregators, which could likely impact the competition market by way of creating barriers.
Regulator has asked directors of Swiggy and Zomato to submit a report on the matter in 60 days.
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