Days after the Enforcement Directorate conducted raids on certain allegedly ‘preferred vendors’ e-commerce giants Amazon and Flipkart, the Competition Commission of India (CCI) has reportedly found that quick commerce majors Swiggy and Zomato have breached competition laws by favouring select restaurants.
The development comes at a time when Swiggy launched its over Rs 11000 crore IPO. The issue, which was fully subscribed, despite brokerage firms giving an “avoid” call to the investors, will be listed on both the bourses BSE and NSE on November 13.
According to media reports, an antitrust investigation revealed that Zomato had secured exclusive agreements with specific restaurant partners by offering reduced commission rates. On the other hand, Swiggy reportedly promised business growth to certain restaurants if they chose to list solely on its platform.
In 2021, the National Restaurant Association of India (NRAI) had approached the CCI against ‘anti-competitive practices’ by Zomato and Swiggy.
