The Competition Commission of India (CCI) has ordered an investigation into the operations and business models of food delivery platforms, Swiggy and Zomato.
The antitrust body in an order dated 4 April, said that the commission is of the view that there exists a prima facie case concerning some of the conduct of Zomato and Swiggy.
The order stated that an investigation by the Director-General (DG) is required to determine whether the conduct of platforms has resulted in contravention of the provisions.
The CCI has directed its DG to carry out a detailed probe and submit a report to it within 60 days.
The probe is in response to a complaint filed by the National Restaurant Association of India (NRAI) about alleged anti-competitive practices by Swiggy, Zomato, which as per the association’s plea commands more than 90 percent market share of the food delivery industry in India. The NRAI has further alleged that these online food delivery platforms are indulged in deep discounting, exclusive tie-ups, and preferential treatments of restaurant partners in violation of the country’s competition rules, which has negative impacts on restaurants’ business as well as impedes the entry of new players into the market.
Reportedly, Zomato in its response to the NRAI’s plea has informed the CCI that it does not operate any price parity policy, Swiggy has said that its price parity clause only requires the restaurant partner to provide a competitive ‘list price’ of its products as offered on other platforms.