Zomato, Swiggy Denied Allegations of Violating India's Competition Law

Zomato, Swiggy Denied Allegations of Violating India's Competition Law
Photo: Mint 12.11.2024 264

Online food ordering services said they are closely working with the  antitrust body to ensure their business practices do not violate India's competition laws.

Zomato rejected the claims made in recent media reports, alleging that the competition commission of India (CCI) has found the food delivery giant guilty of violating competition laws.

In a statement released by the giant on November 10, the company said the antitrust body began a preliminary investigation in April 2022, however, no conclusive findings or orders have been issued against it. 

Swiggy rejected the allegations as well in a statement on Monday. It added that the matter is still ongoing and no judgment regarding the violation has been passed by the antitrust body. 

“Swiggy is fully cooperating with the investigation and is committed to complying with the laws of the country,” 

the company added. 

Last week, Reuters, after accessing internal CCI documents, reported that following an investigation, the CCI would find Zomato and Swiggy in violation of India's antitrust laws.

Among the listed violations by the companies are the signing of “exclusivity contracts” with partners in exchange for low commissions, manipulation of partner restaurants' rankings, unfair penalties, etc. 

CCI commenced its antitrust probe against Swiggy and Zomato in 2022 after the National Restaurant Association of India registered a complaint regarding the impact of anti-competitive practices on food outlets. Since the intimation of April 5, 2022, the commission, on merits, has not passed any order, the company said.

Source: Outlook Business

digital markets  India 

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