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India’s Competition Commission of India (CCI) finds Zomato and Swiggy guilty of violating competition laws.
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Investigation reveals exclusivity agreements and unfair pricing practices limiting market competitiveness.
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Companies face potential penalties and operational changes.
Food delivery giants Zomato and Swiggy have been found guilty of violating competition laws in India, according to a report. The Competition Commission of India (CCI) investigated the companies following a complaint by the National Restaurant Association of India.
The probe revealed that Zomato and Swiggy engaged in practices favoring select restaurant partners, limiting market competitiveness. These practices include exclusivity agreements, lower commission rates, and growth guarantees. The companies also pressured restaurants to maintain consistent pricing across platforms, stifling competition and disadvantaging consumers.
The findings have significant implications for Swiggy, particularly as it prepares for a $1.4 billion IPO. Zomato’s stock dropped 3% following the report. Both companies have reshaped India’s food delivery landscape and are expanding into quick commerce. The CCI is reviewing the investigation findings and will decide on potential penalties or operational changes.
