The Competition Commission of India (CCI) has ordered a probe into the operations and business models of Swiggy and Zomato
The probe was ordered pertaining to alleged violations of Section 3(1) and 3(4) of the Competition Act
The CCI stated that there exists a prima facie case with respect to some of the conduct of Zomato and Swiggy, which requires an investigation by the Director General (‘DG’)
It will determine whether the conduct of these companies have resulted in contravention of the provisions of the Competition Act
The probe is response to a complaint filed by the National Restaurant Association of India (NRAI)
The NRAI had alleged that Swiggy and Zomato indulge in deep discounting, exclusive tie-ups and preferential treatments of restaurant partners
Which is in violation of the country’s competition rules and also impacts the business of restaurants as well as inhibits the entry of new players into the market
