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Policy · Commerce & Consumer Brands

Karnataka HC extends stay on CCI probe against Swiggy

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Date
Company
Swiggy
What it does
Food delivery platform
Kind
Policy
Based in
Bengaluru
Sector
Commerce & Consumer Brands

What they do

Swiggy delivers food and groceries through its mobile app in India

What happened

The High Court paused the competition watchdog's investigation until April 25

Why it matters

The court questioned the regulator's use of untested third-party statements

The details

  • The Karnataka High Court extended a stay on Competition Commission of India proceedings against Swiggy.
  • Justice Sachin Shankar Magadum flagged concerns over the regulator's reliance on untested third-party statements.
  • The court cited a Supreme Court ruling regarding the evidentiary value of statements not tested through cross-examination.
  • The Competition Commission had refused to permit cross-examination of third parties whose statements form the investigation record.
  • The regulator argued that third-party statements were part of a cumulative assessment rather than exclusively relied upon.
  • The High Court held that Swiggy established a prima facie case warranting interim relief.
  • This interim order was first granted on March 17 and has been extended multiple times since then.
  • Swiggy sought restraint on the competition watchdog from proceeding further or sharing confidential information with industry bodies.

The bigger picture

  • The broader antitrust scrutiny of food delivery platforms focuses on market dominance and data practices.
  • The Competition Commission is reviewing a probe finding that Swiggy and Zomato violated antitrust laws via exclusive agreements.
  • A 2022 complaint by the National Restaurant Association of India triggered this specific investigation.
  • Investigators found that platforms allegedly offered lower commissions for exclusivity to restaurant partners.

About the business

  • Swiggy operates as a food delivery platform connecting customers with restaurants.
  • The company also provides grocery delivery services through its application.
  • It generates revenue primarily through commissions charged to partner restaurants.
  • The platform operates across major cities in India.
  • Swiggy uses data analytics to manage logistics and delivery efficiency.
  • The business model relies on maintaining a large network of restaurant partners.
  • Exclusive agreements with restaurants are a key part of its commercial strategy.
  • The company faces regulatory scrutiny regarding these partnership terms.

What happens next

  • The next hearing is scheduled for April 25.

Founders

  • Sriharsha Majety, co-founder
  • Phani Kishan Addepalli, co-founder
  • Nandan Reddy, co-founder

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