te CCI begins investigation against Zomato, Swiggy for alleged unfair practices; see full report! | Zee Business

CCI begins investigation against Zomato, Swiggy for alleged unfair practices; see full report!

The Competition Controller of India (CCI) has started the investigation against Zomato and Swiggy. Tarun Sharma Report.

CCI begins investigation against Zomato, Swiggy for alleged unfair practices; see full report!
The complaint was filed by the National Restaurant Association of India (NRAI) claiming that these food delivery companies were charging high commissions.

The Competition Commission of India (CCI) has started the investigation against Zomato and Swiggy. The complaint was filed by the National Restaurant Association of India (NRAI) claiming that these food delivery companies were charging high commissions. Tarun Sharma Report.

The news was first reported by Zee Business on February 21.

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The investigation has been launched against Zomato and Swiggy on the complaint filed by National Restaurant Association of India (NRAI) before the Competition Commission of India (CCI). The CCI has now asked DG to do further investigation on the matter and soon Director General (DG) of the CCI's will submit its report. 

Why did CCI give an opportunity to the DG to investigate?

NRAI in its complaint said that the details of customers placing orders on Zomato and Swiggy remain with companies adding that the restaurant owners do not get those details. In addition, Zomato and Swiggy also run their own cloud kitchens and also take orders from customers in a customized way and contact them directly. So, both Zomato and Swiggy were doing the customer masking which was found in CCI's preliminary inquiry as well.

After the preliminary inquiry, the rules demand a further investigation by the investigation wing of CCI, which is headed by DG Investigation. Therefore, this investigation has been handed over to the DG. Director-General Investigation has to submit the report within 60 days. If the findings of the investigation corroborate unfair practices, the CCI could impose hefty fines on Zomato and Swiggy, Sharma said.

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Written By: ZeeBiz WebTeam
Edited By: Shivendra Kumar
Updated: Tue, Apr 05, 2022
03:56 pm
ZeeBiz WebDesk
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