Domino’s Pizza India franchise will contemplate taking a few of its enterprise away from common meals supply apps, Zomato and SoftBank-backed Swiggy, if their commissions rise additional, based on a letter seen by Reuters.

The disclosure was made by Jubilant FoodWorks, which runs the Domino’s and Dunkin’ Donuts chain in India, in a confidential submitting with the Competition Commission of India (CCI) which is investigating alleged anti-competitive practices of Zomato and Swiggy.

Jubilant is India’s largest meals companies firm, with greater than 1,600 branded restaurant retailers – together with 1,567 Domino’s and 28 Dunkin retailers.

The CCI ordered in April its probe into Zomato and Swiggy after an Indian restaurant group alleged preferential therapy, exorbitant commissions and different anti-competitive practices. The meals supply apps deny any wrongdoing.

After the CCI sought responses from Domino’s India franchise and several other different eating places as a part of its investigation, Jubilant informed the watchdog this month that 26-27 % of its complete enterprise in India was generated from on-line platforms, together with its personal cellular software and web site.

“In case of an increase in commission rates, Jubilant will consider shifting more of its businesses from online restaurant platforms to the in-house ordering system,” the corporate said in its July 19 letter addressed to the CCI.

A spokesperson for Jubilant FoodWorks declined to remark, whereas the CCI didn’t instantly reply. Zomato, backed by China’s Ant Group, and Swiggy additionally didn’t reply.

With the rising use of smartphones and enticing reductions on provide, meals supply platforms have turn out to be more and more common in India. Jubilant’s warning comes as Zomato and Swiggy face accusations by many eating places in India that their alleged practices harm their enterprise.

The CCI case was sparked by a criticism from the National Restaurant Association of India, which has greater than 500,000 members, and alleges that commissions charged by Zomato and Swiggy within the 20 % to 30 % vary had been “unviable”.

A senior business govt with direct information mentioned that Zomato’s and Swiggy’s commissions had been a priority for Domino’s and plenty of different eating places.

“If commissions are increased further, they will lead to profit squeeze of businesses and will simply be passed on to consumers,” mentioned the manager, who declined to be named.

Before the investigation was introduced, Zomato informed the CCI it negotiates and expenses commissions from eating places however that they had no bearing on how listings seem on its app.

Swiggy said that its commissions had been decided by elements similar to a restaurant’s reputation or the quantity of orders, based on the watchdog’s preliminary order.

© Thomson Reuters 2022