Swiggy, Zomato Address Antitrust Violation Allegations, Call Media Reports ‘Misleading’

Issuing a response, Swiggy said that the reports by the media have confused the investigative process with the final outcome and called these ‘misleading’

In an official statement to the BSE, Zomato said that CCI initiated a preliminary inquiry earlier in April 2022, however, no final findings or orders were issued against it.

Source : PTI

Swiggy and Zomato on Monday addressed the claims regarding the latest reports around the antitrust investigation by the Competition Commission of India (CCI). The online delivery companies responded to media reports stating that the CCI began the investigation into the firm’s business practices.

Issuing a response, Swiggy said that the reports by the media have confused the investigative process with the final outcome and called these ‘misleading’. “Based on the order of the CCI dated April 5, 2022, the Director General investigated certain aspects of the conduct of our business and its inquiry and report of March 2024 is a preliminary step in an ongoing investigation by the CCI, and not a final decision as some reports suggest. We have disclosed all the details of the matter in the company’s Public filing of the DRHP filed on September 26, 2024,” the company said via an official statement.

Further, Swiggy clarified that it is yet to receive the confidential details of the findings from the CCI for submitting a response to the DG’s findings. The company informed that after it submits its response, the CCI will conduct a hearing on the matter and pass the decision on whether any competition law violations have taken place.

“Currently it’s at a preliminary stage and no final decision or order has been issued regarding Swiggy's practices since 2022. Swiggy is fully cooperating with the investigation and is committed to complying with the extant laws of the country,” the quick commerce firm said.

Meanwhile, Zomato also addressed the issue and called the claims ‘misleading’. Issuing an official statement to the BSE, the firm said that CCI initiated a preliminary inquiry earlier in April 2022, however, no final findings or orders were issued against Zomato.

Notably, media reports earlier stated that the investigation into the companies revealed that they violated competition laws by indulging in business practices that favoured certain restaurant chains listed on their apps.