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Restaurant Body Asks Zomato for Relief
14 Jul
Summary
- NRAI wants Zomato to stop exclusivity clauses.
- CCI to hear Zomato antitrust case on July 22.
- DG probe found Zomato's contracts violated competition law.
The National Restaurant Association of India (NRAI) has formally requested the Competition Commission of India (CCI) to intervene in the ongoing antitrust case against Zomato. The association is seeking an immediate directive for Zomato to cease enforcing exclusivity clauses and price-parity provisions while the investigation is pending.
The NRAI's application to the CCI highlights that Zomato should be held to its previous representations of discontinuing these practices. The matter is slated for a hearing on July 22, and the NRAI is opposing any further delays.
This legal battle stems from a 2022 complaint by the NRAI, which led the CCI to order an investigation into Zomato and Swiggy for alleged anti-competitive practices. The Director General's probe concluded that Zomato's exclusivity conditions, minimum business guarantees, and broad price-parity clauses likely contravened competition law.
The NRAI is urging the CCI to prevent Zomato from imposing or penalizing any exclusivity conditions during the proceedings. Concerns were also raised regarding price-parity clauses that could restrict restaurants from offering competitive pricing on other platforms or their own websites.
Meanwhile, rival delivery platform Swiggy is also involved in separate legal challenges with the CCI regarding its own antitrust probe, highlighting broader regulatory scrutiny of food delivery services.
