India’s Competition Commission (CCI) has flagged Swiggy and Zomato for breaching antitrust laws, alleging that both food delivery giants favored certain restaurant partners through exclusivity agreements and other practices, according to a recent Reuters report. The CCI claims that these companies offered preferential terms to select restaurants, limiting competition and creating barriers for other food service businesses.

The investigation highlights that Zomato offered lower commission rates to partners in exchange for exclusivity, while Swiggy assured select partners rapid growth if they listed only on its platform. Swiggy reportedly phased out this program in 2023 but has plans for a similar initiative called “Swiggy Grow” in smaller cities. Additionally, both platforms imposed pricing and discount restrictions, with Swiggy allegedly warning some restaurants about downgrading their rankings if they didn’t maintain price parity.

These findings stem from a complaint filed in 2022 by the National Restaurant Association of India, which expressed concerns about the anti-competitive impact on smaller food outlets. The final CCI ruling could impose significant financial penalties on Swiggy and Zomato, though the companies are expected to challenge the findings.