May 06, 2025 03:21 pm (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Modi, Albanese eye to advance India-Australia Comprehensive Strategic Partnership during telephone conversation | Hold dialogue with all political parties on caste census: Mallikarjun Kharge writes to PM Modi | PM Modi meets NSA Ajit Doval amid India's wait for retaliation against Pahalgam terror attack | Pakistan grilled at UNSC amid rising tension with India after Pahalgam terror attack | 'We'll do everything we can': US House Speaker backs India in fight against terrorism after Pahalgam attack | Centre asks several states to conduct security mock drills amid tensions with Pakistan, first since 1971 | PM Modi holds meeting with Defence Secy as India plans retaliation against Pahalgam attack | Terror hideout busted in Kashmir's Poonch amid India-Pak border tensions after Pahalgam attack | India snaps water flow to Pakistan from Baglihar dam on Chenab river in Pahalgam fallout | Trump imposes 100 percent tariff on non-US films, says 'Hollywood dying a very fast death'
The probe against Zomato and Swiggy began in 2022 after a complaint from the National Restaurant Association of India.

Swiggy, Zomato flouted competition laws, CCI finds in probe: Report

| @indiablooms | Nov 09, 2024, at 01:06 am

New Delhi: An investigation by India’s Competition Commission (CCI) found that major food delivery companies Zomato and SoftBank-backed Swiggy violated competition laws through practices that favoured specific restaurants on their platforms, according to confidential CCI documents.

The CCI's findings, reviewed by Reuters, reveal that Zomato entered “exclusivity contracts” with certain partners in exchange for reduced commission rates, while Swiggy assured business growth for restaurants that agreed to list exclusively on its platform.

The CCI’s investigative arm concluded that these exclusivity agreements “prevent the market from becoming more competitive.”

The antitrust inquiry into Zomato and Swiggy began in 2022 after a complaint from the National Restaurant Association of India, which alleged that the platforms' practices were negatively impacting food outlets.

These CCI documents, kept confidential by the commission’s rules, were shared with Zomato, Swiggy, and the complainant restaurant group in March 2024. This is the first time the findings have been publicly reported.

Following the Reuters report, Zomato’s shares dropped by 3% after initially remaining flat in earlier trading. Swiggy did not respond to requests for comment, while Zomato declined to comment.

Swiggy’s IPO prospectus identifies the ongoing CCI case as an “internal risk,” noting that “any breach of the provisions of Competition Act may attract substantial monetary penalties.”

Swiggy told the CCI that its “Swiggy Exclusive” program ended in 2023 but disclosed plans to launch a similar program, “Swiggy Grow,” in non-metro areas.

Both Swiggy and Zomato have transformed India’s food delivery landscape as smartphone and online ordering have surged, with hundreds of thousands of restaurants listed on their platforms.

Swiggy, which is concluding bids for its $1.4 billion IPO, India’s second-largest this year, has, along with Zomato, also pushed restaurants to maintain consistent pricing across platforms, the CCI documents noted, limiting competition by preventing restaurants from offering lower prices elsewhere.

The investigation also found that Zomato imposed pricing and discount restrictions on restaurant partners, in some cases applying penalties if these terms were not met.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.
Related Videos
FM Nirmala Sitharaman presents Budget 2025 Feb 01, 2025, at 03:45 pm
Nirmala Sitharaman on Budget 2024 Jul 23, 2024, at 09:30 pm
PM Modi on Budget 2024 Jul 23, 2024, at 09:30 pm
Close menu