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NRAI moves CCI highlighting competition issues with Zomato and Swiggy

Jul 05, 2021 04:12 PM IST

The restaurants have claimed that over a period of time the business practices of Zomato and Swiggy started hurting the food and beverages (F&B) industry massively.

In what could be troublesome for IPO-bound Zomato, the National Restaurants Association of India (NRAI) has filed information with the Competition Committee of India (CCI) against the company and its rival Swiggy claiming that their practices have "appreciable adverse effect on competition".

Issues such as bundling of services, data masking, deep discounting, lack of transparency and exorbitant commission are highlighted in the submission.

"We have been in constant dialogue with the food service aggregators over the last 15-18 months to resolve critical issues impacting the sector.  However, despite all our efforts, we have unfortunately not been able to resolve them with the aggregators.  The needle hasn’t moved much on these issues.  We have therefore approached the CCI now to look into the matter and investigate them thoroughly," Anurag Katriar, President of NRAI said in a statement.
Since 2018 , the restaurants have been facing numerous issues in their dealing with the two marketplaces.

The restaurants have claimed that over a period of time the business practices of Zomato and Swiggy started hurting the food and beverages (F&B) industry massively.