Unfair Business Practices: Inquiry against Zomato and Swiggy
Investigation against online food delivery companies Zomato and Swiggy for alleged business practices. According to the reports, such an inquiry has been ordered by the Competition Commission of India (CCI). It is alleged that Swiggy and Zomato are making some changes to their platform in favor of certain brands in the name of certain business finance interests. According to the PTI report, this eliminates the possibility of small restaurants competing in the food delivery sector.
“The allegations of the brands who claim that the allegation is valid at first glance and that these food delivery platforms are in favor of it need to be scrutinized in detail,” the Competition Commission of India said in a statement announcing the inquiry. The Competition Commission of India has directed its investigation team to submit an investigation report within 60 days. The inquiry was ordered in a complaint filed by the National Restaurant Association of India in July.
The business association alleges that Zomato used consumer data to build its own cloud kitchens. Their main allegation is that a cloud kitchen is a virtual kitchen that is used as a means of preparing food only for delivery or takeout. Swiggy is also trying to make a profit by selling to brands of its own interest. The complaint alleges that Apple is redirecting the user to its brands.
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