Unfair Business Allegations Against Zomato and Swiggy

The Competition Commission of India has found Zomato and Swiggy involved in biased business practices, including favoritism towards some restaurants. Initiated by a complaint from the National Restaurant Association of India, the full report remains partially undisclosed. The case was noted in Swiggy's IPO documents.

In a recent development, the Competition Commission of India (CCI) has unveiled allegations against popular food delivery platforms Zomato and Swiggy. According to the investigation, these platforms are accused of engaging in preferential treatment with specific restaurant partners, potentially impacting market fairness.

The probe, which was initiated following complaints from the National Restaurant Association of India (NRAI) in 2022, revealed that Zomato and Swiggy have been involved in practices deemed unfair by regulatory standards. The report, submitted earlier this year, highlights concerns over competition due to relationships between the platforms and certain restaurant partners.

The NRAI has since petitioned the High Court to gain complete access to the investigation findings. Meanwhile, Swiggy's recent IPO announcement acknowledged the continuing investigation. Both platforms face scrutiny over their methods of perceived preferential conduct towards certain restaurant partners, affecting competitive balance.

(With inputs from agencies.)