India’s antitrust regulator, the Competition Commission of India (CCI), has found that food delivery platforms Zomato and Swiggy violated competition laws by engaging in business practices that favour certain restaurant partners, according to confidential documents reviewed by Reuters.
The CCI’s investigation revealed that Zomato had entered into “exclusivity contracts” with selected partners, offering them lower commission rates in return. Similarly, Swiggy guaranteed specific restaurant players business growth on the condition of exclusive listing on its platform. These exclusive arrangements, the CCI noted, hinder market competition by restricting other players from achieving similar visibility and benefits.
The findings were shared with Zomato, Swiggy, and the complainant restaurant groups in March 2024 but have not been disclosed publicly due to the CCI’s confidentiality regulations. This is the first time details of these findings are being reported, shedding light on practices that may shape the future regulatory approach towards online food delivery platforms in India.
