Zomato, Swiggy respond to report on CCI probe findings: 'No final order passed'

Online food delivery platforms Zomato and Swiggy dismissed news reports on the Competition Commission of India's (CCI) investigation into their alleged anti-competitive practices as “misleading”, maintaining that the antitrust body is yet to pass its final order on the matter.

The findings, which have not been made public in line with the CCI’s confidentiality rules, were shared with Swiggy, Zomato, and the complainant restaurant groups in March 2024, according to the report.

While Zomato has asserted it complies with the country's laws, rival Swiggy said it is committed to complying with local regulations, reported PTI.

In a regulatory filing, Zomato said the CCI had issued a "prima facie" order on April 4, 2022, which directed the Office of the Director General of the Commission to investigate potential violations under the Competition Act, 2002.

Since the intimation of April 5, 2022, the commission, on merits, has not passed any order, the company said.

"Accordingly, the aforementioned news article is misleading. We will continue to work closely with the Commission to explain why all our practices are in compliance with the Competition Act and that they do not have any adverse effect on competition in India," Zomato stated in the filing.

In a statement, Swiggy said media reports of the CCI's investigation into Swiggy confuse the investigative process with the final outcome and are misleading.

"Based on the order of the CCI dated April 5, 2022, the Director General investigated certain aspects of the conduct of our business and its inquiry and report of March 2024 is a preliminary step in an ongoing investigation by the CCI, and not a final decision as some reports suggest," Swiggy said.

"Once Swiggy submits its response and CCI conducts a hearing on the matter, CCI will pass its decision on whether any competition law violations have occurred. Currently it's at a preliminary stage and no final decision or order has been issued regarding Swiggy's practices since 2022," the company added.

The antitrust body ordered a detailed investigation into Zomato and Swiggy following a complaint from the National Restaurant Association of India (NRAI) in April 2022.