New Delhi: The Competition Commission of India (CCI) has launched a probe into the behavior of food aggregators Swiggy and Zomato, which have been accused of delaying payments, imposing unilateral conditions and charging high commissions.
According to the fair trade regulator, there is a prima facie case for certain actions of Zomato and Swiggy.
The CCI has requested its Director General to conduct a thorough investigation into the claims and submit a report within two months.
“The Commission is of the view that there is a prima facie case with respect to Zomato and Swiggy activity, which requires an inquiry by the Director General (DG) to assess whether the conduct of the Platform has resulted in a breach of the requirements ,” said the antitrust authority.
The National Restaurant Association of India (NRAI), which represents over 50,000 restaurant operators across the country, filed a complaint which led to the order.
In July last year, the association filed a complaint with the Antitrust Commission against Zomato and Swiggy alleging data masking, deep discounting and violation of platform neutrality.
“The magnitude of anti-competitive activities of Zomato and Swiggy has increased manifold during the (Covid-19) pandemic, and despite many contacts with them, these deep-pocketed marketplace platforms are not interested in addressing the concerns of restaurants ,” it alleged.
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