Will explain to CCI all business practices in compliance with law, says Zomato

Food aggregator Zomato on Tuesday said it will continue to work closely with the Competition Commission of India to assist the fair market regulator with their investigation and explain to them why all of its business practices are in compliance with competition laws.

Besides, the food aggregator firm claimed its business practices have no “adverse effect” on competition in India.

“We intend to promptly comply with any recommendations given to us by the Hon’ble Commission,” it said in a regulatory filing to the exchanges.

The statement from the company comes a day after the fair market regulator ordered a probe into food delivery majors Zomato and Swiggy’s alleged involvement in delayed payment cycles and exorbitant commissions.

Following a complaint from the National Restaurant Association of India (NRAI), the CCI said that it is of the view that there exists a prima facie case with respect to some of the conduct of Zomato and Swiggy, “which requires an investigation by the Director General (DG), to determine whether the conduct of platforms have resulted in contravention of the provisions”.

The NRAI represents over 50,000 restaurant operators across the country. The NRAI had alleged that the commissions that are charged from restaurants are “unviable” and “are to the tune of 20 per cent to 30 per cent, which are extremely exorbitant”.

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