Zomato and Swiggy Found in Violation of Antitrust Laws, Says CCI
NEW DELHI: The Competition Commission of India (CCI) has determined that prominent food delivery platforms Zomato and Swiggy have breached antitrust laws by implementing business practices that gave preferential treatment to certain restaurant partners.
According to documents uncovered during the investigation, Zomato entered into “exclusivity agreements” with select restaurants, offering reduced commission rates in exchange for their commitment to listing exclusively on its platform. Similarly, Swiggy was found to have guaranteed business growth to certain restaurant partners in return for exclusive agreements, further limiting competition.
The inquiry, launched in 2022 following a complaint by the National Restaurant Association of India (NRAI), concluded that these exclusivity deals restricted competition within the food delivery market. The CCI’s investigation unit noted that such practices hindered the overall competitiveness of the sector.
While the full findings have not been made publicly available due to confidentiality requirements, the preliminary details were shared with Zomato, Swiggy, and the NRAI in March 2024. These findings had not been disclosed until now.
Zomato chose not to comment, and both Swiggy and the CCI have yet to respond to media inquiries. In the wake of the report, Zomato’s shares saw a 3% decline, reversing earlier gains.
The case now enters its final phase, with the CCI’s leadership currently reviewing the investigation’s conclusions before issuing a final decision.
