India’s antitrust watchdog, the Competition Commission of India (CCI), will launch an investigation against food delivery firms Zomato and Swiggy over the allegations of unfair pricing practices, data masking, and other issues leveled by the National Restaurant Association of India (NRAI), the Economic Times reported.
The restaurant body alleged that Zomato and Swiggy have engaged in data masking, wherein restaurant partners get no data or information about end consumers. The data is said to be used by the two food delivery services to benefit themselves.
The NRAI also alleged that Zomato and Swiggy have entered into unfair contracts with their restaurant partners. Other allegations include the listing of their own cloud kitchen brands, thus creating a “conflict of interest” for these platforms’ role as intermediaries.
Both Zomato and Swiggy have either clarified or responded to most of the allegations leveled by the restaurant body.
Atul Verma, director general of the CCI, will submit his findings to the watchdog within 60 days.
See also: Zomato’s financial health in 5 charts
Editing by Miguel Cordon and Lorenzo Kyle Subido
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