Food delivery app Zomato said on Tuesday it was in compliance with the country’s competition laws – a stance it will explain to the anti-monopoly authority Competition Commission of India (CCI) during the restaurant preferred list survey.
CCI had on Monday ordered a detailed investigation against Zomato and its rival Swiggy, for alleged unfair business practices regarding their relationships with partner restaurants.
“In its order, the Commission stated that it did not prima facie find any concerns regarding our independence in the collection of commissions or the alleged bundling of services,” Zomato said in a stock filing.
However, CCI in the order said that “it would like to investigate aspects such as the preferential list of partner restaurants and price parity between platforms, etc.”
Zomato said he will work closely with the ICC and assist in its investigation and “explain to the regulator why all our practices comply with competition laws and have no adverse effect on competition in India.”
The startup said it intends to quickly comply with any recommendations given to it by the CCI.
The National Restaurant Association of India (NRAI), on whose complaint the order was placed by CCI, has welcomed the investigation.
“We are very pleased that the CCI saw the merits of our submission which highlighted the concerns of the restaurant industry,” the NRAI said in a separate statement.
The association said it has engaged with both aggregators and relevant government authorities over the past few years to address existing industry issues with aggregator operations.
“These pain points were amplified during the pandemic when restaurants and cloud kitchens struggled to survive due to their increased reliance on these aggregators,” he said, adding that platforms food aggregators should ideally operate as a neutral market.
The NRAI said the outcome of the investigation will pave the way for a level playing field for all stakeholders in the ecosystem.