NRAI files additional information with CCI against 'anti-competitive practices' by Zomato, Swiggy

The National Restaurant Association of India (NRAI) on Monday said it has filed additional information with the fair trade regulator CCI alleging "anti-competitive practices" by Zomato & Swiggy.

Earlier on July 5, the association had said that keeping the interest of restaurants in mind and how they have been affected by the "inherently anti-competitive practices" of Zomato and Swiggy, it had on July 1 filed information with the Competition Commission of India (CCI).

In the additional information NRAI has filed, it has alleged that Zomato and Swiggy are charging a commission in the range of 25 to 35 percent of the order value in 2020-21 and there have been numerous instances of delay in payment by the two aggregators which have affected the entire cash flow of its partners.

"Zomato & Swiggy are forcing restaurant partners to give discounts on their platforms to maintain good visibility on the platform. They have shifted the entire cost burden on the restaurants," it added.

The aggregators are threatening to delist the restaurants if they do maintain price parity. There have been instances wherein some partners have been delisted from the platform since they offered some better rates to consumers on other channels, NRAI said.

"We are committed to the cause of our partners, and we will put our best efforts with the CCI to ensure that the practices of these marketplace platforms are aligned to the benefit of the entire F&B industry," NRAI President Anurag Katriar said.

E-mails sent to Zomato and Swiggy seeking comments on the matter did not elicit any immediate response.

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