**Executive Summary:**
This document is a response to a parliamentary question regarding anti-competitive practices by food delivery companies like Zomato and Swiggy. It outlines the existing legal framework under the Competition Act, 2002, and the Consumer Protection Act, 2019, that addresses such concerns. It details the Competition Commission of India's (CCI) role in investigating and penalizing anti-competitive conduct. It also mentions a specific case filed before the CCI regarding Quick Commerce companies.
**Key Points / Main Content:**
* **Competition Act, 2002 & CCI Authority:**
* The Competition Commission of India (CCI) is authorized to investigate and address anti-competitive agreements (Section 3) and abuse of dominant position (Section 4).
* CCI can initiate inquiries based on its own motion, information received from individuals/associations, or referrals from governmental bodies.
* Upon finding contraventions of Sections 3 or 4, the CCI can impose monetary penalties as per Section 27.
* CCI aims to prevent practices with adverse effects on competition, promote and sustain market competition, protect consumer interests, and ensure free trade.
* **Consumer Protection E-Commerce Rules, 2020:**
* These rules, under the Consumer Protection Act, 2019, safeguard consumers from unfair trade practices in e-commerce.
* E-commerce entities are prohibited from manipulating prices to gain unreasonable profit or discriminating between consumers.
* E-commerce entities cannot adopt any unfair trade practice.
* The rules outline responsibilities and liabilities for marketplace and inventory e-commerce entities, including customer grievance redressal.
* **Current Investigation:**
* The CCI is currently examining information regarding alleged anti-competitive activities by Bundl Technologies Pvt. Ltd, Blink Commerce Pvt. Ltd and Zepto Marketplace Pvt. Ltd in the Quick Commerce sector.
**Impact Analysis:**
**Food Delivery Companies (e.g., Zomato, Swiggy, Bundl Technologies Pvt. Ltd, Blink Commerce Pvt. Ltd and Zepto Marketplace Pvt. Ltd):**
* *Impact:* Subject to scrutiny under the Competition Act, 2002, and the Consumer Protection Act, 2019. Potential for investigation by the CCI, monetary penalties, and required adjustments to business practices to ensure compliance with fair competition and consumer protection laws.
* *Action Required:* Ensure compliance with the Competition Act, 2002, and the Consumer Protection Act, 2019, including fair pricing, non-discriminatory practices, and transparent operations. Cooperate with any CCI investigations.
**Consumers:**
* *Impact:* Protected from unfair pricing, discriminatory practices, and other anti-competitive behaviors by e-commerce entities. Benefit from grievance redressal mechanisms established under the Consumer Protection Act, 2019.
* *Action Required:* Be aware of rights under the Consumer Protection Act, 2019, and report any unfair trade practices to the appropriate authorities.
**Restaurants/Trade Associations (e.g., NRAI):**
* *Impact:* Protected from anti-competitive practices by food delivery companies that may harm their business interests. Can provide information to the CCI regarding potential violations of the Competition Act, 2002.
* *Action Required:* Monitor the market for anti-competitive practices and report any concerns to the CCI with supporting evidence.
**Competition Commission of India (CCI):**
* *Impact:* Responsible for investigating and addressing anti-competitive practices in the food delivery and e-commerce sectors.
* *Action Required:* Continue to monitor the market, investigate complaints, and enforce the Competition Act, 2002, to promote fair competition and protect consumer interests.
Key Entities Referenced
Competition Act, 2002: A law in India that prohibits anti-competitive agreements, abuse of dominant position and regulates combinations (mergers and acquisitions), that cause or are likely to cause an appreciable adverse effect on competition within India.
Competition Commission of India (CCI): The primary competition regulator in India. It is responsible for enforcing the Competition Act, 2002 to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets.
Zomato: An Indian multinational online food ordering and delivery platform.
Swiggy: An Indian online food ordering and delivery platform.
NRAI: Likely refers to the National Restaurant Association of India, an organization representing restaurants in India.
Consumer Protection E-commerce Rules, 2020: Rules notified under the Consumer Protection Act, 2019 to safeguard consumers from unfair trade practices in e-commerce, outlining responsibilities of e-commerce entities and specifying liabilities.
Consumer Protection Act, 2019: An Act of the Parliament of India to protect the interests of consumers in India.
Bundl Technologies Pvt. Ltd: Company involved in AntiCompetitive activities and filed before Competition Commission of India CCI.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 4116
ANSWERED ON MONDAY, AUGUST 18, 2025/ SRAVANA 27, 1947 (SAKA)
ANTI-COMPETITIVE PRACTICES BY FOOD DELIVERY COMPANIES
QUESTION
4116. Shri Sudama Prasad:
Will the Minister of CORPORATE AFFAIRS
be pleased to state:
(a) whether the Government has taken cognizance of the News items "NRAI to sue
Zomato and Swiggy for attempting to monopolise the food delivery market "appeared
in 'The Times of India' dated 9 January, 2025;
(b) if not, the reasons therefor;
(c) whether the Government intends to introduce regulatory measures to control such
practices and if so, the details thereof;
(d) the measures taken by the Government against the anti-competitive practices by
companies like Swiggy and Zomato especially which violates the regulations under the
Competition Act, 2002; and
(e) if not, the reasons therefor?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND MINISTER OF
STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS.
(SHRI HARSH MALHOTRA)
(a)&(b): As per the provisions of Section 19 of the Competition Act, 2002, (the ‘Act’)
the Competition Commission of India (CCI) may inquire into any alleged contravention
of Section 3 (prohibition of anti-competitive agreements) or Section 4 (prohibition of
abuse of dominant position) either on its own motion or on-
(i) receipt of any information, in such manner and accompanied by such fee as may
be determined by regulations, from any person, consumer or their association or
trade association; or
(ii) a reference made to it by the Central Government or a State Government or a
statutory authority.
The CCI examines information(s) received alleging anti-competitive practices or abuse
of dominance under the Act and wherever a prima facie case is found, the matter is
investigated. Where after inquiry, the CCI finds that any agreement referred to in
Section 3 or an action of an enterprise in a dominant position, is in contravention of
Section 3 or Section 4 as the case may be, it may pass orders including imposition of
monetary penalty in terms of the provision of Section 27 of the Act.(c): The CCI takes action to prevent practices having adverse effect on competition, to
promote and sustain competition in markets, to protect the interests of consumers and
to ensure freedom of trade carried on by other participants in markets under the various
provisions of the Competition Act, 2002.
The Department of Consumer Affairs has notified the Consumer Protection (E-
commerce) Rules, 2020 under the provisions of the Consumer Protection Act, 2019 to
safeguard consumers from unfair trade practices in e-commerce. These rules, inter-alia,
outline the responsibilities of e-commerce entities and specify the liabilities of
marketplace and inventory e-commerce entities, including provisions for customer
grievance redressal.
In terms of the provisions of these rules, no e-commerce entity shall
(i) manipulate the price of the goods or services offered on its platform in such a
manner as to gain unreasonable profit by imposing on consumers any unjustified
price having regard to the prevailing market conditions, the essential nature of the
good or service, any extraordinary circumstances under which the good or service
is offered, and any other relevant consideration in determining whether the price
charged is justified.
(ii) discriminate between the consumers of the same class or make any arbitrary
classification of consumers affecting their rights under the Act.
These rules also provide that no e-commerce entity shall adopt any unfair trade
practice, whether in the course of business on its platform or otherwise.
(d)&(e): An information with regard to Quick-Commerce has been filed before
Competition Commission of India (CCI) by an individual regarding Bundl Technologies
Pvt. Ltd, Blink Commerce Pvt. Ltd and Zepto Marketplace Pvt. Ltd for their alleged
involvement in Anti-Competitive activities.
The CCI examines information(s) received alleging anti-competitive practices
or abuse of dominance under the Act and wherever a prima facie case is found, the
matter is investigated.
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