Competition Commission / Order for investigation against Swiggy-Zomato, report to be given in 60 days, received many complaints including taking unreasonable price

The Competition Commission of India (CCI) under the Ministry of Corporate Affairs has ordered a probe against online food providers Zomato and Swiggy. The statutory body CCI has given this order based on the information of the National Restaurant Association of India (NRAI) last year. The restaurant association has expressed hope that the investigation will yield positive results, saying that this order will give equal opportunity to the rest of the restaurants in the country. In this case, the inquiry wing of the commission will give its report in 60 days.

The Competition Commission has launched a probe against restaurant partners Zomato and Swiggy for neutrality, alleged unfair pricing and other issues. NRAI has issued a statement saying that it is extremely happy with the order of the inquiry. He said that the CCI has considered our information to be correct, in which the concern of the restaurant industry is considered appropriate and has acted on it.

The Competition Commission says that NRAI has been working with this catering group and affiliated government agencies for the past few years to address the problems faced by the industry. Its problem was exacerbated during the Corona pandemic, when restaurants and large-scale commercial chefs were faced with an existential crisis and their reliance on partners such as Zomato and Swiggy.

In this matter, Zomato says that the Competition Commission has not prima facie considered any deficiency in our freedom to take commission or services. The commission wants to investigate matters like preferential listing and price parity of restaurant partners on the stock exchanges. We will fully assist the commission in the investigation.

Zomato shares fell 3 per cent

Shares of the company fell three per cent on Tuesday after ordering a CCI probe into alleged unfair business practices against Zomato. The Competition Commission had on Monday ordered a detailed inquiry into the matter.

Competition Commission of India : Order for investigation against Swiggy Zomato, report to be given in 60 days, received many complaints including taking unreasonable price