Online food ordering company Zomato on Monday said it complies with the laws of the country, while Swiggy said it is committed to complying with local regulations. Both the companies are facing CCI investigation for anti-competitive activities. According to Bhasha news, on the investigation of Competition Commission of India (CCI), both the companies termed as misleading the news in which Zomato and Swiggy have talked about giving alleged preference to some restaurant partners.
Final order not passed yet
According to the news, Swiggy and Zomato said that CCI has not yet passed its final order on the unfair trade practices case. Zomato reported, CCI had issued a prima facie order on April 4, 2022, directing the office of the Director General of the Commission to investigate possible violations under the Competition Act, 2002. The company said, since the notice dated April 5, 2022, the Commission has not passed any order on merits.
fully cooperating in the investigation
Zomato said that accordingly the above news is misleading. We will continue to work closely with the Commission to clarify that all our practices are in accordance with the Competition Act and do not have any adverse impact on competition in India. Swiggy said in the statement that the news related to the CCI investigation against it misleads the investigation process and the final outcome. Swiggy said that it is fully cooperating in the investigation and is committed to comply with the existing laws of the country.
engage in unfair business practices
According to sources, the CCI investigation found that both the companies engaged in unfair business practices, including allegedly giving preferential treatment to some partner restaurants. CCI had ordered a detailed investigation in April 2022 and the investigation report was submitted to the regulator earlier this year. As per the norms the report of CCI Director General has been shared with the concerned parties and later, they will be called for hearing by the regulator. The decision to initiate an investigation against both the companies was taken following a complaint by the National Restaurant Association of India (NRAI).
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