Mumbai, Nov 09: An investigation by the Competition Commission of India (CCI) has found that food delivery platforms Zomato and Swiggy engaged in anti-competitive practices, including allegedly giving preferential treatment to certain restaurant partners.
The probe was launched in April 2022 following a complaint from the National Restaurant Association of India (NRAI), and its findings were submitted to the CCI earlier this year.
According to sources, the CCI’s Director General’s report, which outlines the investigation's conclusions, has been shared with the parties involved. These companies will soon be called for hearings before the competition watchdog. After considering their responses, the CCI will issue a final decision.
The investigation, prompted by the NRAI’s complaint, examined several issues related to Zomato and Swiggy’s business practices. Sources indicated that the probe uncovered evidence of anti-competitive behavior, particularly in the form of preferential treatment extended to some restaurant partners. The detailed findings were shared with the relevant stakeholders earlier this year.
The NRAI confirmed that it had reviewed a redacted version of the investigation report, which was sent to it in March 2024. In a statement, the NRAI said it had petitioned the High Court in November 2024, seeking full access to the investigation’s findings to better protect market interests.
NRAI President Sagar Daryani expressed hope that the CCI would expedite its investigation into additional concerns raised by the association in its 2022 petition.
In a recent disclosure related to its Initial Public Offering (IPO), Swiggy acknowledged the ongoing CCI investigation, which was mentioned in the company's Red Herring Prospectus. Swiggy’s IPO closed on the following Friday.
