CCI Investigation Finds Zomato, Swiggy Violated Antitrust Laws, Impacting Competition: Report

India’s antitrust authority, the Competition Commission of India (CCI), has found that food delivery platforms Zomato and Swiggy have breached competition regulations, according to non-public documents reviewed by Reuters. The investigation discovered that both companies engaged in practices that limited market competitiveness by forming exclusivity agreements with restaurant partners.

The CCI's probe found that Zomato entered "exclusivity contracts" with certain restaurant chains, securing lower commission rates in return, while Swiggy allegedly promised guaranteed business growth to restaurants that listed exclusively on its platform. Such arrangements, according to the CCI’s investigative findings, reduce market competition and put independent restaurants at a disadvantage.

The documents, which are confidential under CCI rules, were shared with Zomato, Swiggy, and the National Restaurant Association of India (NRAI)—the original complainant—earlier this year in March 2024. Zomato declined to comment, while Swiggy and the CCI did not respond to inquiries.

The investigation began in 2022 following complaints from the NRAI, which argued that the anti-competitive practices of food delivery platforms were adversely affecting smaller restaurants. The findings further highlighted how both companies pushed restaurants to maintain price parity across platforms, preventing them from offering discounts on alternative platforms and limiting consumer choice.

The next step in the CCI’s case involves a final decision by its leadership, which will determine any potential penalties or mandated changes to Zomato and Swiggy’s business practices. The final verdict may take several weeks, and both companies have the option to contest the findings before the CCI reaches a decision.