Under CCI Lens: Zomato, Swiggy Assert No Violations
Competition Commission of India is yet to pass its final order on unfair business practices; Leading online food delivery platforms facing probe over alleged preferential treatment
Under CCI Lens: Zomato, Swiggy Assert No Violations
New Delhi: Facing a CCI probe for anti-competitive practices, online food delivery platform Zomato has asserted it complies with the country’s laws, while rival Swiggy said it is committed to complying with local regulations.
Both companies termed news reports on the Competition Commission of India’s (CCI) investigation ‘misleading’, maintaining that the CCI is yet to pass its final order on the matter of unfair business practices, including alleged preferential treatment to some restaurant partners by Zomato and Swiggy. In a regulatory filing, Zomato said the CCI had issued a ‘prima facie’ order on April 4, 2022, which directed the Office of the Director General of the Commission to investigate potential violations under the Competition Act, 2002. Since the intimation of April 5, 2022, the commission, on merits, has not passed any order, the company said.
“Accordingly, the aforementioned news article is misleading. We will continue to work closely with the Commission to explain why all our practices are in compliance with the Competition Act and that they do not have any adverse effect on competition in India,” Zomato stated in the filing.
In a statement, Swiggy said media reports of the CCI’s investigation into Swiggy confuse the investigative process with the final outcome and are misleading.
“Based on the order of the CCI dated April 5, 2022, the Director General investigated certain aspects of the conduct of our business and its inquiry and report of March 2024 is a preliminary step in an ongoing investigation by the CCI, and not a final decision as some reports suggest,” Swiggy said.
The company further stated it is yet to receive the confidential details of the findings from the CCI for filing a response to the DG’s finding.
“Once Swiggy submits its response and CCI conducts a hearing on the matter, CCI will pass its decision on whether any competition law violations have occurred. Currently it’s at a preliminary stage and no final decision or order has been issued regarding Swiggy’s practices since 2022,” the company said.
