The Competition Commission of India (CCI) has directed food suppliers Zomato and Swiggy’s apps to be investigated for being “neutral” platforms, the antitrust watchdog said on Monday.
The order comes months after the National Restaurant Association of India (NRAI) asked CCI to investigate companies for violating platform neutrality by prioritizing exclusive contractors.
“Currently there is a conflict of interest, in the case of both Suigi and Jomato … which could come in the way of their being a neutral platform,” the CCI said in a statement.
NRAI, which represents more than 5 lakh restaurants across India, has also accused Zomato and Swiggy of misusing consumer data, charging extra commissions and offering massive discounts.
“The Commission has observed that it has already found competency to investigate the issue of platform neutrality,” the CCI said, but added that it did not find it competent on allegations of delayed payments, “unilateral clauses” and “additional commissions, etc.” Associated with the competition.
Swiggy and Zomato did not immediately respond to a request for comment.
Thomson Reuters 2022