Zomato and Swiggy Deny Allegations of Competition Law Violation, Commit to Compliance

Leading Food Platforms Face CCI Investigation

India’s prominent food delivery platforms, Zomato and Swiggy, have denied recent allegations regarding violations of competition law, calling the reports misleading. According to the companies, they are fully committed to compliance with India’s competition regulations.

Zomato Clarifies Compliance Amid CCI Investigation

Zomato confirmed that it has been under investigation by the Competition Commission of India (CCI) since April 2022, with the CCI’s Director General calling for further examination. However, Zomato emphasized that no final orders have been issued by the CCI, and it remains committed to defending its business practices.

In response to recent media reports, Zomato stated that its operations comply with competition laws, stressing that the media reports misrepresent its practices. Zomato had previously disclosed this investigation to stock exchanges in April 2022.

Swiggy’s Statement on Misleading Reports

Swiggy also responded to media reports, calling them misleading. The company stated that the reports misinterpret preliminary findings, clarifying that the investigation remains in an early stage. Swiggy is cooperating fully with the investigation and has disclosed all relevant case details in its public filings.

Background: NRAI’s Complaint Initiated Investigation

The ongoing investigation into Zomato and Swiggy originated from a complaint by the National Restaurant Association of India (NRAI). Allegations include preferential treatment for select restaurant partners and possible anti-competitive practices. Both companies maintain their commitment to fair competition.

Awaiting CCI’s Final Verdict

As Zomato and Swiggy await the CCI’s final ruling, their actions and practices will have broader implications on the Indian online food delivery ecosystem, potentially influencing industry standards and practices across India.