Food Delivery Titans Face Heat in Antitrust Probe

India's antitrust body accused food delivery giants Zomato and Swiggy of anti-competitive practices. The investigation revealed exclusive contracts and price parity policies that hindered market competition. As the CCI reviews findings, penalties or mandates for business practice changes could be imposed.

In a high-stakes regulatory showdown, India's antitrust watchdog has flagged food delivery powerhouses Zomato and Swiggy for potentially breaching competition laws. The Commission's findings suggest their business tactics may unfairly advantage certain restaurant chains.

Documents from the Competition Commission of India (CCI), viewed by Reuters, outline how Zomato's exclusivity contracts with partners and Swiggy's guaranteed growth packages lean towards restricting market competitiveness. These arrangements, as alleged, limit the restaurant market's dynamism and openness.

While Zomato and Swiggy remain under scrutiny, they have declined to comment on the ongoing investigation, a process initiated by a complaint from the National Restaurant Association of India. Awaiting the final verdict, these tech titans might face corrective mandates or penalties, although they retain the right to dispute the findings.

(With inputs from agencies.)