Disclaimer: We may earn a commission if you make any purchase by clicking our links. Please see our detailed guide here.

Follow us on:

Google News

Restaurants’ Body Moves CCI Against Zomato, Swiggy

Meet the voice behind Indo-Asian News Service (IANS), a storyteller navigating the currents of global events with precision and depth. Crafting narratives that bridge cultures, IANS brings you the pulse of the world in every word

Join the Opinion Leaders Network

Join the Techgenyz Opinion Leaders Network today and become part of a vibrant community of change-makers. Together, we can create a brighter future by shaping opinions, driving conversations, and transforming ideas into reality.

The National Restaurant Association of India (NRAI) has approached the Competition Commission of India (CCI) against online food aggregators Zomato and Swiggy over alleged anti-competitive practices.

Keeping the interest of restaurants in India in mind and how they have been affected by the inherently anti-competitive practices of Zomato and Swiggy, the NRAI on July 1 filed an information with the CCI highlighting the following practices by Zomato and Swiggy, which have an appreciable adverse effect on competition, – the industry body said in a statement on Monday.

According to the NRAI, the anti-competitive actions of the aggregators include bundling of services, data masking, exorbitant commission charges, price parity agreements, and deep discounting, which forces the restaurant partners to give discounts to maintain an appropriate listing, exclusivity of listed restaurants, and violation of platform neutrality, vertical integration along with lack of transparency on the platform.

Anurag Katriar, President, NRAI, said: “We have been in constant dialogue with the foodservice aggregators over the last 15-18 months to resolve some critical issues impacting the sector. However, despite all our efforts, we have unfortunately not been able to resolve them with the aggregators.”

Saying that the needle hasn’t moved much on these issues, he added: “We have therefore approached the CCI now to look into the matter and investigate them thoroughly.”

The NRAI President added that the industry body is committed to the cause of its partners, and will put its best efforts with the CCI to ensure that the practices of these marketplace platforms are aligned to the benefit of the entire food and beverages industry.

The statement noted that since 2018, restaurants have been facing numerous issues in their dealing with the marketplace platforms, Swiggy and Zomato.

When these marketplace platforms started, they had certain advantages. However, over a period, their business practices started hurting the F&B industry massively, it said.


Partner With Us

Digital advertising offers a way for your business to reach out and make much-needed connections with your audience in a meaningful way. Advertising on Techgenyz will help you build brand awareness, increase website traffic, generate qualified leads, and grow your business.

Power Your Business

Solutions you need to super charge your business and drive growth

More from this topic