The regulator concluded that there was no preliminary case that Zomato violated Section 4 of the Competition Act, and closed the case filed by Lalit Wadher, an Indian citizen.
Online food-delivery platform Zomato has received a favorable ruling from the Indian antitrust watchdog, which has dismissed a complaint alleging anticompetitive practices related to its pricing strategies and various fees.
The Competition Commission of India, or CCI, concluded that Zomato's pricing practices — including food charges, platform fees, delivery fees and tips — "do not appear to be unfair and discriminatory in nature."
A complaint was lodged by Lalit Wadher, a senior citizen, who expressed concerns about what he perceived as inflated food prices on the Zomato app, the addition of platform and other charges, issues related to the quality of delivered food and a lack of transparency regarding payment timelines for restaurants.
While the complainant did not cite a specific violation of the 2002 Competition Act, the CCI assessed the concerns primarily under Section 4, which addresses the abuse of a dominant market position.
In its assessment, the CCI addressed the informant's assertion that Zomato operates as part of a duopoly without significant competition. The commission pointed out that this claim lacked supporting data or evidence.
On reviewing the various charges implemented by Zomato, including the cost of food, platform fees, delivery charges and the option for tipping, the CCI found no indication of unfair or discriminatory practices.
The commission also clarified in its four-page order that the issue of tipping, which the complainant noted had a default setting. The CCI emphasized that tipping is not obligatory and that users have a readily apparent option to decline it.
Moreover, the allegations concerning the edibility of food, the absence of restaurant menu prices on packaging, and the timing of payments made to restaurants by Zomato were not considered to raise any concerns from a competition-law perspective in this particular case.
The CCI concluded that there was no preliminary case that Zomato violated Section 4 of the Competition Act, and closed the case.
The order, though dated March 6, 2025, was released by the CCI last Friday. The CCI clearing Zomato of the pricing-policy allegations comes as the commission is still investigating a 2021 complaint against India’s two largest food delivery apps — Zomato and Swiggy — for anticompetitive conduct, which includes deep discounting, data masking and violating platform neutrality. The allegations made by the National Restaurant Association of India prompted the CCI to initiate an investigation in April 2022.
Source: MLex
