Zomato, Swiggy to Face India Antitrust Probe Into the Apps’ Neutrality

The Competition Commission of India (CCI) has ordered an investigation of meals supply firms Zomato and Swiggy over the businesses’ apps being “neutral” platforms, the antitrust watchdog mentioned on Monday.

The order comes months after the National Restaurant Association of India (NRAI) requested the CCI to analyze the businesses for breaching platform neutrality by offering precedence to unique contractors.

“A conflict of interest situation has arisen in the present case, both with regard to Swiggy as well as Zomato … which may come in the way of them acting as neutral platforms,” the CCI mentioned in an order.

The NRAI, which represents greater than 5 lakh eating places throughout India, additionally alleged Zomato and Swiggy had been misusing shopper information, charged exorbitant commissions, and supplied huge discounting.

“The Commission observes that it has already found merit in investigating the issue pertaining to platform neutrality,” the CCI mentioned, however added that it didn’t see deserves in allegations of delayed funds, “one-sided clauses” and “exorbitant commission etc” being linked to competitors.

Swiggy and Zomato didn’t instantly reply to emails searching for remark.

© Thomson Reuters 2022