Home Business CCI to probe Zomato, Swiggy over neutrality, Marketing & Advertising News, ET BrandEquity

CCI to probe Zomato, Swiggy over neutrality, Marketing & Advertising News, ET BrandEquity

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CCI to probe Zomato, Swiggy over neutrality, Marketing & Advertising News, ET BrandEquity

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 Picture for representative purpose
Picture for representative purpose

The Competition Commission of India (CCI) has ordered an investigation of food delivery companies Zomato and Swiggy over the companies’ apps being “neutral” platforms, the anit-trust agency said on Monday.

The order comes months after the National Restaurant Association of India (NRAI) asked the CCI to investigate the companies for breaching platform neutrality by providing priority to exclusive contractors.

“A conflict of interest situation has arisen in the present case, both with regard to Swiggy as well as Zomato … which may come in the way of them acting as neutral platforms,” the CCI said in an order.

The NRAI, which represents more than 500,000 restaurants across India, also alleged Zomato and Swiggy were misusing consumer data, charged exorbitant commissions and provided massive discounting.

“The Commission observes that it has already found merit in investigating the issue pertaining to platform neutrality,” the CCI said, but added that it did not see merits in allegations of delayed payments, “one-sided clauses” and “exorbitant commission etc” being linked to competition.

Swiggy and Zomato did not immediately respond to emails seeking comment.

In addition, the regulator also examined allegations that Google used ‘‘search manipulation’ to push Google Pay. CCI has directed the Reserve Bank of India to look into the matter, the sources added. The search giant will get to present its argument to the regulator on these latest findings following which a verdict will be given, they added…

A division bench of Justices Poonam Bamba and Rajesh Shakdher adjourned the matter after WhatsApp’s counsel, senior advocate Harish Salve, said the Personal Data Protection Bill was yet to be passed by Parliament…



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