The Competition Commission of India (CCI) has ordered probe into alleged anti-competitive trade practices by food-ordering platforms Zomato and Swiggy. The antitrust watchdog’s probe order on Monday comes against the backdrop of complaints made by the National Restaurant Association of India (NRAI) against the food tech giants.
The Competition Commission of India (CCI)is the stautory body in India. It consists of six members led by a Chairperson. They are chosen by the Central government. Each member including the chairperson has knowledge and experience of 15 years in various fields like Business, Economics, Trade etc.,
The 32-page order said, “Commission is of the view that there exists a prima facie case with respect to some of the conduct of Zomato and Swiggy, which requires an investigation by the director general.”
The NRAI has alleged that apart from masking consumer data, Swiggy and Zomato prohibit individual restaurants from delivering orders on their own due to compulsory bundling of ordering and delivery services.
In addition, it alleged that the commissions charged by both platforms, which command a combined market share of around 95%, are unviable and are to the tune of 20% to 30%, which are exorbitant for individual restaurants.
Published by – Kiruthiga K
Edited by – Kritika Kashyap
