Zomato and Swiggy were accused of doing this wrong thing? Now the government started investigation

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Zomato and Swiggi- India TV Paisa

Photo:FILE

Zomato and Swiggi

New Delhi. Online delivery company Zomato and Swiggy are caught in a big controversy. These companies have been accused of breaking competition law. After the matter came to light, Zomato on Tuesday said that it will take its stand before the Competition Commission of India (CCI) on the issue of preference for certain restaurants.

Coming to the matter, the CCI had ordered a detailed probe against Swiggy and Zomato for alleged unfair trade practices with restaurant partners. “The Commission, in its order, said that it has not prima facie found any concern with respect to our independence with respect to commission or services,” Zomato said in a statement to the stock exchange.

The CCI, however, in its order had said that it would examine similar aspects such as giving preference to restaurant partners and fixing the price across all platforms. The same Zomato said that it will work closely with the CCI and cooperate in the investigation.

The company said it will explain to the regulator that its business practices are in compliance with competition laws and have no adverse effect on competition in India. The company said that it would immediately comply with any suggestions made by the CCI.

The regulator has issued this order after a complaint by the National Restaurant Association of India (NRAI). Both companies are accused of unfairly doing business with their restaurant partners.



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