New Delhi
: The National Restaurant Association of India (NRAI) has contacted the Delhi High Court to question its exclusion from confidential rings in an antitrust investigation against food delivery giants Zomato and Swiggy in a constant antitrust competition investigation.
The latest defense specifically challenged NRAI’s exclusion in confidential documents in CCI’s investigation of Zomato, a person familiar with the matter said.
“The request is for inclusion in confidentiality rings manufactured by CCI under Article 36 of the General Regulations.
This comes after India’s leading restaurant industry association seeks judicial relief for similar exclusion in a Swiggy investigation.
In this case, the Delhi High Court issued a notice in November 2024 and the matter is still pending.
According to the Delhi High Court’s career list, the judge led by Justice Sachin Datta plans to hear a new petition on Monday.
Disputes on confidential visits
The confidential ring ring introduced by CCI in April 2022 allows the designated representatives of the parties to access sensitive commercial data for a fair review in the antitrust litigation process.
Initially included NRAI, but was later excluded from the CCI order of October 14, 2024, prompting the current petition.
Email queries sent to NRAI, CCI, Zomato and Swiggy have not been answered until the release time.
The controversy stems from a 2021 complaint filed by NRAI, accusing Zomato and Swiggy of engaging in anti-competitive practices. These include mandatory use of its delivery services, covering up restaurant customer data, imposing premium commissions through unfair contracts, and promoting oneself or affiliated cloud kitchens. The CCI discovered the Prima Facie case and conducted a detailed investigation in 2022.
Following the investigation from September 2022 to October 2023, the CCI Director-General submitted a confidential report based on data from both platforms. In April 2024, CCI approved NRAI’s limited access to reports, but comply with confidentiality safeguards and the commitment to destroy data after the lawsuit is over.
However, Zomato and Swiggy opposed CCI’s move, believing that sharing such sensitive information, even under confidential agreements, could cause irreparable business harm. Both companies filed an order from the CCI in the Karnataka High Court, citing Article 57 of the Competition Act 2002 and Article 35 of the CCI (General) Regulation 2009, which involves the processing of confidential information.
In June 2024, the Karnataka High Court directed CCI to reconsider its position on sharing such data. The regulator then issued an October 2024 order to exclude NRAI from confidential rings, triggering the latest lawsuit, this time focusing on Zomato.
According to a report by brokerage firm Motilal Oswal, Gurugram-based Zomato will have the largest share of the Indian food delivery market, while its newly listed rival Swiggy accounts for the remaining 42%.
