The NRAI had asked the IHK to investigate the companies for violating platform neutrality
The NRAI had asked the IHK to investigate the companies for violating platform neutrality
India’s antitrust authority has launched an investigation into food delivery company Zomato Ltd. and Swiggy because the companies’ apps are “neutral” platforms, the Indian Competition Commission (CCI) said on Monday.
The order comes months after the National Restaurant Association of India (NRAI) asked the CCI to investigate the companies for violating platform neutrality by giving priority to exclusive contractors.
“In the present case, a conflict of interest has arisen in relation to both Swiggy and Zomato … which could prevent them from acting as neutral platforms,” the IHK said in an order.
The NRAI, which represents more than 5,00,000 restaurants across India, also alleged that Zomato and Swiggy abused consumer data, charged exorbitant commissions and offered massive rebates.
“The Commission notes that it has already found merit in investigating the issue of platform neutrality,” the CCI said, but added that it had made allegations of late payments, “unilateral clauses” and “exorbitant commissions, etc.” to the competition are coupled.
Swiggy and Zomato did not immediately respond to emails asking for comment.
