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Zomato and Swiggy deny alleged competition law violations by CCI

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Food tech majors Zomato and Swiggy have denied recent claims that they violated competition laws, following an investigation by the Competition Commission of India (CCI).

CCI finds foodtech majors guilty of breaching of competition law

In the separate statements, the companies confirmed that the Competition Commission of India’s (CCI) investigation, started in April 2022, is still ongoing with no new developments. Recently, reports revealed that the probe found the companies guilty of breaking India’s competition laws by unfairly favouring certain restaurants through partnerships.

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According to INC42, Zomato mentioned that in April 2022, the CCI asked its investigative arm to look into potential violations of the Competition Act, 2002, in an exchange filing. “Since the intimation of April 5, 2022, the Commission, on merits, has not passed any order. Hence, there have been no further reportable events…,” Zomato said.

Company yet to receive confidential information of findings – Swiggy

Further, IPO-bound Swiggy has responded to the Competition Commission of India’s (CCI) investigation into its business practices. According to Swiggy, “The DG investigated certain aspects of the company’s business and its March 2024 report is a preliminary step in the investigation.”

“Swiggy is yet to receive the confidential details of the findings from the CCI for filing a response to the DG’s finding. Once Swiggy submits its response and CCI conducts a hearing on the matter, CCI will pass its decision on whether any competition law violations have occurred,” company said.

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Notably, the CCI investigated the companies in 2022 following a complaint by the National Restaurant Association of India (NRAI) in 2021. The complaint accused the food delivery giants of anticompetitive practices, including bundling services, high commissions, delayed payments, and one-sided norms.

Back then, NRAI claimed that both companies offered deep discounts, which hurt local restaurants. They also accused them of violating platform neutrality with their pricing practices. This development comes just after Swiggy’s public market debut. Swiggy’s IPO, which closed last week, was subscribed 3.59 times.

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