Food aggregators Zomato and Swiggy are facing allegations of violating competition law. An investigation by the Competition Commission of India revealed that the two companies have suppressed competition by guaranteeing exclusive contracts and business growth to restaurant chains on their platforms.
Zomato had ‘exclusivity contracts’ with its partners, offering restaurants a lower commission. Swiggy, on the other hand, promised increased business to restaurants that exclusively listed on its platform. Due to this, restaurants are finding it difficult to offer lower prices on other online platforms.