new Delhi: According to news reports, the Competition Commission of India (CCI) has ordered a probe into the conduct of online food aggregators, Swiggy and Zomato.
As per an order dated April 4 (Monday), the fair trade regulator has mentioned that the operations of food delivery platforms, which are facing charges like delayed payment cycles, imposition of unilateral clauses and exorbitant commission, require investigation. . ,
According to the reports, there is a prima facie case regarding the conduct of Zomato and Swiggy.
“The Commission is of the view that a prima facie case exists with respect to certain conduct of Zomato and Swiggy, which requires an inquiry by the Director General (DG), to determine whether the operation of the platforms has resulted in the breach. The CCI order mentioned that the DG will conduct a thorough inquiry into the allegations and submit a report within 60 days, the CCI said.
The National Restaurant Association of India (NRAI) has accused Zomato and Swiggy. The restaurant body had approached the CCI in July 2021, seeking probe against the two food delivery giants.
The association, which represents over 50,000 restaurants spread across India, had urged the CCI to investigate allegations of data masking, deep discounting and violation of platform neutrality against Zomato and Swiggy.
NRAI alleged, “During the pandemic, the magnitude of anti-competitive practices of Zomato and Swiggy have multiplied and despite several discussions with them, these deeply funded marketplace platforms are not interested in alleviating the concerns of restaurants.” “
The NRAI further said that the commission charged by food delivery platforms from restaurants is ‘unviable’ and ranges from ’20 per cent to 30 per cent, which is exorbitant’.
NRAI said Zomato was accused of charging around 27.8 per cent of the order value of restaurants listed on its platform, and for cloud kitchens, Zomato charged a commission rate of 37 per cent.