Competition Commission probe finds Zomato, Swiggy violating competition norms

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Key Points

A Competition Commission probe has found that food delivery platforms Zomato and Swiggy indulged in unfair business practices, including alleged preferential treatment to some restaurant partners, according to sources...

The detailed investigation was ordered by Competition Commission of India (CCI) in April 2022 and the probe report was submitted to the regulator earlier this year...

The sources said the probe has found that the two entities indulged in anti-competitive practices, including allegedly extending preferential treatment to some restaurant partners..

While ordering the investigation in April 2022, CCI had said that prima facie there exists a conflict of interest situation, warranting a detailed scrutiny into its impact on the overall competition between the RPs vis--vis the private brands/entities which the platforms may be incentivised to favour...

As per the April 2022 order, preferential treatment accorded to Restaurant Partners (RPs) in which these platforms have an equity or revenue interest can create barriers for the existing RPs to compete on fair terms...

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