Food delivery platforms, Zomato and Swiggy seem to land in a soup following a CCI probe against them over their alleged unfair business practices with respect to their dealings with restaurant partners.
The Competition Commission of India (CCI) order has come on a complaint filed by the National Restaurant Association of India (NRAI). The watchdog’s probe arm — Director General (DG) — will investigate the case.
CCI noted that preferential treatment accorded to the Restaurant Partners (RPs) in which these platforms have an equity or revenue interest can create barriers for the existing RPs to compete on fair terms.
CCI has said that that “prima facie there exists a conflict of interest situation, warranting a detailed scrutiny into its impact on the overall competition between the RPs vis-vis the private brands/entities which the platforms may be incentivised to favour”.
