MUMBAI: Amid a CCI investigation into anti-competitive practices, Zomato has emphasised its adherence to competition laws, while competitor Swiggy has affirmed its dedication to following local regulations.
Both Zomato and Swiggy called reports about the Competition Commission of India’s (CCI) probe “misleading”. They pointed out that the CCI has not yet made final decision on claims of unfair business practices like giving special treatment to restaurant partners. In a regulatory announcement, Zomato said the CCI had issued a preliminary order on April 4, 2022.
This order instructed the Office of the Director General of the Commission to look into breaches of the Competition Act. “Since the intimation of April 5, 2022, the CCI, on merits, has not passed any order. The aforementioned news article is misleading,” the company said.
“We will continue to work with the CCI to explain why our practices are in compliance with the Competition Act and they don’t have any adverse effect,” Zomato added. As per Swiggy, media reports of CCI’s probe into Swiggy confuse investigative process with final outcome and are misleading.
“Based on order of the CCI dated April 5, 2022, the Director General probed certain aspects of the conduct of our business and its inquiry and report of March 2024 is a preliminary step in an ongoing probe by the CCI, and not a final decision as some reports suggest,” Swiggy said.